6:05am ▪ 2 minute read ▪ Written by Fenelon L
The Bitcoin market is going through a delicate phase, characterized by increased volatility and large capital movements. Recent on-chain data reveals contrasting behavior among investors, hinting at turmoil ahead.
Confused “short-termists”
Short-term Bitcoin holders who hold their assets for less than 155 days face a dangerous situation.
Over the past week, the realization limit for investors in this category has decreased by $6 billion, from $17 billion to $11 billion. This sharp decline indicates increased risk-taking, perhaps caused by over-optimism or an attempt to “catch up with the market.”
Amr Taha, a prominent analyst at CryptoQuant, said: “The sudden increase in buying activity among short-term holders indicates bullish sentiment, but reflects dangerous exposure to risk in an uncertain market. There is a possibility that there may be.”
Bitcoin veteran seizes opportunity
On the other hand, long-term investors who have held Bitcoin for more than 155 days appear to be taking a more cautious approach. On-chain data shows that the realized cap has decreased by $6 billion, suggesting strategic profit-taking.
This dichotomy in behavior between different investor groups raises questions about the future direction of the market. Some experts, such as anonymous trader Recto Capital, are warning of a possible short-term correction: “Bitcoin is currently showing early signs of an impending decline.”
Despite these short-term disruptions, Bitcoin maintains an upward trajectory over larger timescales. Trader Mags is optimistic: “The three-month chart remains incredibly bullish, with the close above 2021’s historic highs.”
This means you need to be careful in this volatile situation. Investors should always pay attention to market signals while keeping in mind Bitcoin’s long-term potential in an ever-changing financial environment.
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Fenelon L.
Passionate about Bitcoin, explorer of blockchain and cryptography, and a challenger at the forefront of communication. We guarantee you a free life and financial freedom, and we guarantee you a safe life so you can use your Bitcoin safely.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
