- The price of Bitcoin has been showing a sideways movement for a few weeks. While many altcoins experience high volatility in price movement, the value of BTC continues to stay below $30,000.
- The circulating supply of USDT increased in early December 2022, early March 2023, and mid-June 2023, causing the price of BTC to rise.
- The Short-Term Holders (STH) group increased their supply by 100,000 BTC, raising it from the previous 4.1 million BTC to 4.2 million BTC. The STH group may transition to an accumulation phase in the future.
The price of Bitcoin continues to maintain its stagnant period; the move of short-term investors and the supply of USDT may soon increase volatility.
Bitcoin Price Trading Below $29,500
The price of Bitcoin has been showing a sideways movement for a few weeks. While many altcoins experience high volatility in price movement, the value of BTC continues to stay below $30,000. However, a few recent analyses indicate that this slow price movement may come to an end.
The king of the crypto world seemed comfortable below $30,000 for a long time. According to data, the price of BTC saw a 1.3% increase in the past seven days. It is currently trading around $29,430 and has a market value of over $572 billion.
However, according to recent analyses, this trend may soon change. A CryptoQuant analyst highlighted the relationship between new capital inflows and the price of BTC. Unfortunately, the supply of all stablecoins has been decreasing for the past 18 months. Therefore, the analysis focused on USDT, which is associated with this year’s rally.
The circulating supply of USDT increased in early December 2022, early March 2023, and mid-June 2023, causing the price of BTC to rise. Therefore, the circulating supply of USDT should be monitored as an important metric. If this metric increases in the coming days, an increase in the price of BTC can be observed.
Another analysis highlighted the behavior of short-term holders, which can have an interesting impact on the market. A CryptoQuant analyst revealed that the Short-Term Holders (STH) group increased their supply by 100,000 BTC, raising it from the previous 4.1 million BTC to 4.2 million BTC. The STH group may transition to an accumulation phase in the future. Currently, STH could be a positive sign as it constitutes the majority of market entries.
Current Status of BTC
Although the above analyses suggest that the price movement of BTC may be bullish, other metrics seem to contradict this. For example, net deposit transactions of Bitcoin on exchanges were high compared to the 7-day average, indicating selling pressure.
The aSORP value of Bitcoin was red, indicating that more investors were selling to make a profit. The price of BTC usually deviates from the funding rate. At the time of writing, the Binance funding rate for BTC was green, suggesting an increase in the possibilities of price decline. However, the weighted sentiment indicator showed improvement in the past few weeks.
