Unraveling Bitcoin’s recent price surge: Leading the charge

  • Recent buyers have been actively acquiring BTC holdings.
  • Whale accumulation of BTC has shown a decrease in pace.

Bitcoin [BTC] has experienced a significant price surge in the past few days, sparking a positive sentiment among traders. However, the optimism around BTC extends beyond just traders.

Active Short Term Holders

Over the last few days, the supply held by Short Term Holders (STH) has increased by more than 20,000 Bitcoin.

U.S. ETFs have acquired 11,000 Bitcoin during the same period, despite outflows from Hong Kong ETFs. This suggests a notable demand from various sources, contributing to the price movement.

The growing demand from STHs establishes a positive feedback loop. With more buyers entering the market, the price rises, attracting even more buyers, which may expedite the price surge.

However, it’s essential to note that STHs are inclined to sell quickly during price declines, potentially leading to heightened volatility.

Thus, while STH accumulation signals positive momentum for Bitcoin in the short term, it could impact the long-term growth of BTC.

Source: glassnode

Understanding Holder Behavior

The declining Long/Short ratio indicates a rise in Short Term Holders and a decrease in long-term holders accumulating BTC.

Long-term holders are more likely to retain their holdings during volatile market conditions, which can potentially affect BTC negatively in the long term.

The MVRV ratio for BTC has shown an increase in the recent days, suggesting that a large number of BTC addresses have become profitable.

This profitability could lead to selling pressure on BTC, as STHs might be motivated to sell for profit.

Source: Santiment

Whale activity will continue to influence BTC’s future price trajectory. Recent observations show that whales have paused their accumulation of BTC.

Although they haven’t divested their holdings, the lack of interest in purchasing BTC at current price levels is notable.

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Conversely, retail traders have been actively purchasing Bitcoin, contributing to the recent price hike in BTC.

At the time of writing, BTC was priced at $67,110.39, with a 1.17% increase in the last 24 hours.

Source: Santiment

Next: As Bitcoin dominance drops, Chainlink exploits the market shift – How?

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