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Current On-chain Data in Bitcoin Shows the Possibility of Continued Upside

  • Bitcoin (BTC) has experienced the biggest recovery in the cryptocurrency ecosystem since the beginning of the month.
  • This week, BTC has surpassed its All-Time High (ATH) price of the year and reached a value above $31,000.
  • According to data on the blockchain, Bitcoin’s daily trading volume is not yet in line with this bullish sentiment and is currently showing a decrease of 42%.

Bitcoin price has been trading within a stable price range for the past two days; what do current metrics say about the future of BTC?

Bitcoin Price Successfully Recovers

Bitcoin (BTC) (36)
Bitcoin (BTC) has experienced the biggest recovery in the cryptocurrency ecosystem since the beginning of the month. Supported by factors such as the continuous bullish trend brought by the bulls, BTC has reached a value above $31,000 this week, surpassing its All-Time High (ATH) price of the year.

At the time of writing, Bitcoin is trading at a price of $30,550. According to data from Glassnode, a cryptocurrency market analytics provider, BTC’s rise from $25,000 to above $30,000 has resulted in over 1.8 million Short-Term Holders (STH) making a profit.

The percentage of profitable addresses accounts for 96.9% of BTC in this short-term supply category.

bitcoin-sth-profit-percent

This signal has many promising subtexts worth highlighting. When fear about an asset is alleviated, there tends to be an increase in capital inflow. This is also true for Bitcoin, as the recent price recovery and retesting of the most important resistance point means that more traders can trade more comfortably.

According to data on the blockchain, Bitcoin’s daily trading volume is not yet in line with this bullish sentiment and is currently showing a decrease of 42%. If the daily trading volume catches up with the current price momentum, we can expect a significant jump in the near future.

Positive Developments Supporting Bitcoin’s Rise

Data on the blockchain and technical analysis support the anticipated growth thesis, and there are several positive fundamentals supporting Bitcoin’s growth in the near term. From BlackRock, the world’s largest asset management company, applying for a spot Bitcoin ETF product to other fund managers investing in Bitcoin mining, there are many positive news that will generally increase market sentiment.

In addition, most long-term HODLers (those who hold Bitcoin for a long time) are not selling their Bitcoins, as seen in the example of MicroStrategy. Long-term holding commitment is a positive trend that has the potential to reduce the overall supply of the asset. The intersection of positive news around Bitcoin strengthens the medium and long-term bullish signal.

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Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
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