With Bitcoin’s price rising again recently, there has been a noticeable increase in demand for the largest cryptocurrency asset among short-term holders, suggesting strong optimism about Bitcoin’s growth potential in the near term. are.
Short-term holders seek Bitcoin rebound
Axel Adler Jr., a macro researcher and author at leading on-chain company CryptoQuant, recently confirmed the positive progress of Bitcoin’s short-term holder supply 30-day change indicator. reported that average demand has resumed. period of decline.
According to market data, these investors are typically identified by having owned BTC for less than 155 days and are once again actively buying the cryptocurrency. This rebound reflects renewed interest among retail holders, which may be driven by increased optimism about the potential for overnight price increases.
After thoroughly analyzing the Supply Change 30D indicator for short-term holders, experts note that the indicator has witnessed a rebound in the past 18 days even though the Supply Change Oscillator has consistently remained in negative territory. I emphasized. He further highlighted that during the same period, supply increased by approximately 15%, or 0.95% daily.
Short-term Bitcoin holder demand recovers | Source: Axel Adler Jr. on X
So far, investors and traders are keeping an eye on the developments, especially as they could signal that a potential price increase is on the horizon, especially amid market-wide uncertainty.
As Adler pointed out in another previous post, demand for short-term Bitcoin holders is increasing as volatility gradually returns to the market. “Volatility is returning to the market and it goes both ways, so you need to always assess risk when making trading decisions,” he said.
Adler pointed out that the leverage amount of the three crypto exchanges is currently 32%. On the other hand, a surge of more than 55% could lead to a “series of liquidations.”
Will BTC reach new highs soon?
As hopes for a massive rally continue to rise, Michael Van de Poppe, market expert and CIO of MN Consultants, takes a closer look at BTC’s recent performance and believes that the digital asset is He predicted that it could reach a new peak soon. Van de Poppe stressed that Bitcoin is in a correction period, which means the market could “show some weakness.”
However, given the pivotal events ahead, such as the U.S. presidential election and a potential rate cut by the Federal Reserve, Van de Poppe believes these events could lead to Bitcoin’s rise in the coming weeks. We are confident that it can cause large price movements, and the -highest price is “near”.
At the time of this writing, BTC is trading at $67,899, indicating a gain of 0.70% over the past day. Although the price is slowly rising, BTC trading volume has decreased by 2% in the past 24 hours, indicating a negative outlook.
BTC trading at $67,787 on 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Unsplash, chart from Tradingview.com
