- Short-term holders have sold their BTC holdings in a big way in the past few days.
- However, there is a bullish environment in the market.
According to the pseudonymous analyst at CryptoQuant crypto hellBitcoin (BTC) King Coin trading at a nine-month high caused a jump in exchange reserve metrics, indicating that traders are taking advantage of the recent rise in price to book profits.
The BTC exchange reserve as of this writing was 2.19 million BTC. This metric is a collective measure of potential coins found on cryptocurrency exchanges and ready to be sold on the market.
A rise indicates high selling pressure in the market, while a fall means that traders favor accumulation.
In a bullish trend, Cryptohale said that based on the characteristics of BTC exchange reserves, “short-term traders are likely to send bitcoins to exchanges.”
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The analyst evaluates BTC’s Short Term Production Profit Ratio (STH-SOPR) metric to determine what traders are doing in the short term.
At 1.05, Cryptohale said that this metric indicated that short-term holders were in control of the market and were involved in a significant volume of coin distribution.
In addition, Cryptohell reports that this investor group has begun to liquidate its holdings due to various factors affecting the current market situation.
These factors include the FOMC meeting on March 22, most Muslim traders withdraw their investments as Ramadan approaches, and traders are satisfied with their profits and plan to exit the market when $30,000 is reached.
Cryptohell stated why the $30,000 price was significant:
“The $29k to $32k price range is resistance to watch out for. So it makes sense that with the current price already at $27k+, traders are slowly preparing to sell their bitcoin supply. However, the most notable factor currently affecting the market is the FOMC meeting…”
Bullish sentiment is on chain
While BTC short-term traders may participate in coin spreads in anticipation of a drop in price, an assessment of BTC’s on-chain performance confirms that sentiment remains fairly bullish.
by data EmotionAt press time, the weighted price of BTC was 2,407.
A positive price-weighted value for an asset confirms that the market is confident that the asset’s price will continue to rise. Furthermore, BTC had an MVRV ratio of 40.49%, indicating that many BTC holders retained the gains. Therefore, there is little reason for many investors to maintain bearish sentiments.
Reading Bitcoin (BTC) Price Prediction 2023-2024
Furthermore, after last weekend’s price crash turned BTC’s funding rate negative for the first time this year, it has been able to regain its position in positive territory as price performance improved during the week.
BTC’s positive funding rates suggest many traders believe the leading coin will see further price growth.
Finally, Open Interest has also experienced a rally in recent days, confirming that BTC investors remain bullish.