Miami, Florida – Bitcoin [BTC] has experienced a significant price surge in recent days, leading to heightened optimism among traders. However, it’s not just traders who are showing positivity towards BTC.
Over the past few days, Short Term Holders (STH) have been accumulating a considerable amount of BTC, with a net increase of over 20,000 Bitcoin in their supply. This spike in demand from STHs has created a positive feedback loop, driving up the price and attracting more buyers. While this accumulation is a positive sign for BTC’s short-term momentum, it could potentially impact its long-term growth due to the likelihood of quick selling on price dips by STHs.
Additionally, the declining Long/Short ratio indicates a decrease in the number of long-term holders accumulating BTC. These long-term holders are more likely to retain their holdings during volatile price fluctuations, which could have a negative long-term impact on BTC. The MVRV ratio for BTC has also surged recently, suggesting that many addresses holding BTC have become profitable, potentially leading to selling pressure as STHs may be tempted to sell for profit.
Furthermore, whales, who play a significant role in determining BTC’s price, have been stagnant in terms of accumulating BTC in recent days. While they have not sold any of their holdings, they also show no interest in accumulating BTC at the current price level.
Retail traders, on the other hand, have been observed buying Bitcoin in large quantities, contributing to the recent price surge of BTC. At the time of writing, BTC was trading at $67,110.39, with a 1.17% price increase in the last 24 hours. This behavior from various holder groups provides insights into the current state of the Bitcoin market and its potential trajectory moving forward.