The metric subtracts the net unrealized loss from the net unrealized profit of all circulating Bitcoin supply to gauge market sentiment. This indicator tends to increase during bull markets and the company suggests that the various value bands indicate market phases.
With the recent increase in the price of Bitcoin, apparently, the market has migrated from “Hope” to the “Optimism” phase. Next, the asset could either continue its momentum and enter the “Belief” phase, or retreat to the “Anxiety” phase.
Another indicator from Glassnode is the percent of supply in profit. This shows what percentage of the Bitcoin supply is currently valued higher than at the time of the previous transaction. This metric appears to indicate that there is still room for growth.
Bloomberg is bullish
“I expect the Bitcoin price to continue appreciating, just much more slowly than it has in its past. Shorter-term, $8,000 (about the 52-week mean) appears to be the key inflection point resistance of which it is breaching.”
Furthermore, he observed that Bitcoin has greatly outperformed the stock market in 2020. He expects the coin to successfully transition into a gold-like store-of-value asset, which is only accelerated by the fiat stimuli injected by the central banks:
“Up over 20% in 2020 to May 1 vs. down about 10% in the S&P 500 is a sign of Bitcoin gaining the upper hand vs. the stock market. I see the first born crypto transitioning from acting like a risk-on asset towards a store-of-value like gold and gaining headwinds from unparalleled central bank easing.”
Recently, another Bitcoin optimist, Tim Draper, confirmed that he stands by his bullish prediction of Bitcoin reaching $250,000 by early 2023.