On-chain analyst Darkfost said Bitcoin’s market trend has improved noticeably compared with late August, pointing to the Capital Cost Basis indicator as the key signal behind that shift. The metric weights realized price by the amount of capital investors deployed when buying Bitcoin, which gives more influence to BTC acquired at higher prices. Darkfost said the current capital cost basis stands at about $80,400. In late August, Bitcoin was still trading around that level. It has now closed above it for several consecutive weeks, suggesting that most capital committed to the market has moved into slight profit. According to Darkfost, the gradual improvement in profitability has also made investor holdings more stable, which could help the market remain resilient during the current consolidation phase.
ChainCatcher reported that on-chain analyst Darkfost said Bitcoin’s market trend has improved noticeably compared with late August, with the change reflected in the Capital Cost Basis indicator.
The metric weights realized price by the amount of capital investors put in when they bought Bitcoin, giving greater influence to BTC purchased at higher prices. The current cost basis is about $80,400.
Darkfost said Bitcoin was still hovering around that key level in late August. It has now closed above it for several consecutive weeks, indicating that most capital in the market is now sitting on slight gains. As profitability improves, investor holdings have also become more stable, which Darkfost said may help the market stay resilient during the current consolidation phase.
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