Bitcoin (BTC) has made a notable recovery, reaching its All-Time High (ATH) price above $31,000 this past week, fueled by bullish market sentiments. As the world’s leading cryptocurrency gains traction, on-chain signals suggest further uptrend is expected.
At present, Bitcoin is priced at $30,597.40, and according to insights from crypto markets analytics provider Glassnode, Bitcoin’s growth from $25,000 to over $30,000 has moved more than 1.8 million Short-Term Holder (STH) coins into profit. This indicates that a staggering 96.9% of BTC in the short-term supply category now belongs to profitable addresses.
The promising signals highlight some interesting market trends. Generally, capital inflow tends to increase when fear surrounding an asset dissipates. In Bitcoin’s case, the recent price recovery and retesting of a crucial resistance point after months make traders feel more comfortable engaging in the market. However, on-chain data reveals that Bitcoin’s trading volume has not caught up with the bullish sentiments and is currently down by 42%. If the daily buying volume aligns with the current price momentum, we could see a significant leap in the near term.
Besides on-chain and technical insights supporting the growth thesis, favorable fundamentals back Bitcoin’s growth in the near term. Developments like the application for a spot Bitcoin ETF product by BlackRock, the world’s largest asset management company, and investments in Bitcoin mining by Tether contribute to boosting sentiments across the board.
Another positive trend shaping the cryptocurrency’s outlook is that most long-term HODLers are not selling their Bitcoin, as exemplified by MicroStrategy. This commitment to holding the digital asset for extended periods leads to a reduction in the overall supply, which can support its price.
In summary, the confluence of positive news surrounding Bitcoin cements the bullish signal in the mid-to-long term. However, with any investment, it is crucial to conduct thorough market research before participating to avoid potential financial losses. The author and the publication do not hold any responsibility for personal financial losses due to market conditions.
Source: Coingape
