Bitcoin On-Chain Data Flashes Rare Bullish Signal
Bitcoin (BTC) has seen the biggest recovery in the digital currency ecosystem as it concerns its value gains since the start of the month. The premier cryptocurrency topped its All-Time High (ATH) price above $31,000 for the year this past week after a series of consistent uptrend fueled by the bulls.
On-Chain Signal Suggests More Uptrend
At the time of writing, Bitcoin is changing hands at a price of $30,597.40. According to insights from crypto markets analytics provider, Glassnode, the growth of BTC from a price of $25,00 to above the $30,000 level has sent more than 1.8 million Short-Term Holder (STH) coins into profit.
The percentage of profitable addresses accounts for 96.9% of BTC in this short term supply category.
The recent #Bitcoin move from $25K to above the $30K level has sent an additional +1.8M (+66.4%) Short-Term Holder coins into profit, placing the percentage of STH Supply in profit at 96.9% (2.6M BTC).
With respect to historical precedence, previous periods of unilateral STH… pic.twitter.com/D5VobbqVek
— glassnode (@glassnode) June 25, 2023
This signal has a lot of promising undertones that are worth highlighting. There is a general tendency to see more inflow of capital when the fear surrounding a particular asset has been allayed. This is the case with Bitcoin as the recent price recovery and retest of the most important resistance point in months, more traders may feel more comfortable to wade in.
According to on-chain data, Bitcoin’s trading volume is yet to catch up with these bullish sentiments as it is down by 42% at the time of writing. Should the daily buying volume catch up with the current price momentum, we can expect a significant leap in the near term.
Favorable Fundamentals are Here
While the on-chain and technical insights support the projected growth thesis, there are favorable fundamentals to back the growth of Bitcoin in the near term. From the application for spot Bitcoin ETF product by BlackRock, the largest asset management company in the world and other money managers to the investment in Bitcoin mining by Tether is doing a lot to boost sentiment across the board.
Additionally, most long term HODLers are not selling their Bitcoin as we have seen in the case of MicroStrategy. This commitment to hold for long is a positive trend that is capable of trimming down the overall supply of the asset. The confluence of the positive news surrounding Bitcoin solidifies the bull signal in the mid-to long term.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
