Bitcoin

Bitcoin’s [BTC] previous YTD high was over two months ago. It has lost its bullish momentum, which has made investors wary of its near-term prospects. BTC is now at risk of losing investor confidence, which could increase sell pressure. 
A shift in perspective is sometimes all that is required to gain a better understanding of the market. This is not the first time Bitcoin has been unable to settle at its press time price level. 
A three-day chart revealed that the recent resistance level near $28,000 served as support in May 2022. Prior to the sideways activity, the price was on a descending trajectory, which was then followed by another descent. 
Will the inverse occur this time? Since the beginning of 2023, the price has been on a bullish trajectory, and further gains are possible if the rally continues. So far, its relative strength has remained healthy, and its MFI indicates that liquidity is still flowing into Bitcoin. 
Furthermore, a popular cryptocurrency analyst recently highlighted observations that suggest the bulls may continue to dominate. 
According to CredibleCrypto, Bitcoin’s bullish expansion phase has already begun. He also mentioned that its most recent consolidation phase was 30% longer than the previous phase, which took place between 2019 and 2020. Based on the observations above, the analyst expects the next bull run to be particularly strong. 
But do those expectations translate to the chain? According to Glassnode’s data, the amount of BTC supply that has been active for more than ten years has now reached a new high of slightly more than 2.7 million BTC. Furthermore, whales appear to be purchasing. The number of addresses holding one or more BTC has reached an all-time high. 
A quick look at the supply distribution shows that addresses with more than 10,000 BTC have added to their holdings in the last 30 days. However, addresses with 100-1000 Bitcoins reduced their balances during the same time period. 
The observations made above do not necessarily exempt Bitcoin from sell pressure. At press time, the market was still on edge, possibly waiting for the next major signal that could provide some directional clarity. Bitcoin exchange flows have decreased in recent days. This includes both inflows and outflows of exchange. 
On the plus side, demand for derivatives remains healthy. As traders seek to maximize profits in low-volume markets, such low market movements are bound to attract some leverage activity in derivatives demand. Since the beginning of April, Bitcoin’s estimated leverage ratio has risen slightly. 
Bitcoin’s open interest has increased significantly in recent days. It has risen significantly since the end of March. If the trend continues upward, market confidence may return. 
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The post <a rel="nofollow" href="https://bitcoinworld.co.in/having-doubts-about-bitcoins-btc-short-term-gains-consider-this/">Having Doubts About Bitcoin’s [BTC] Short-term Gains? Consider This…</a> appeared first on <a rel="nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Having Doubts About Bitcoin’s [BTC] Short-term Gains? Consider This…

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