Bitcoin long-term holders have remained in profit for nearly four years, on-chain data showed.
In a report published on October 13, on-chain analyst Axel Adler Jr. said Bitcoin was trading about 72% above long-term holders’ average cost basis of $48,600.
The report underscored that long-term holders remain in profit despite Bitcoin’s recent pullback. Adler wrote that long-term holders have stayed profitable continuously since January 2023, and that the closest Bitcoin came to their average purchase price after that was in March 2023.
Still, a decline in long-term holders’ average cost basis was identified as a risk factor.
Adler said the weekly decline in the average cost basis has been limited to as much as 0.34% since August. If that decline widens further, it could be interpreted as a sign that selling pressure is strengthening. Conversely, if the rate of change in the average cost basis turns positive again, it could signal that long-term holders are accumulating Bitcoin.