Given that the market has recently driven up the price of Bitcoin once again to the pivotal $65,000 level, traders and investors are currently seeing huge profits from their positions, especially holders of the crypto asset in the short term.
Short-Term Bitcoin Holders In The Green
A recent report from the world’s leading on-chain and data platform, Glassnode, reveals a significant increase in profit dominance for the short-term holders of Bitcoin. This rise in profit supremacy comes in light of recent positive price movements in BTC and the general market.
After weeks of volatility and consolidation, the value of BTC has recovered notably, putting a greater proportion of short-term traders in profit. As prices rise, short-term investors are taking advantage of the situation, further driving the upward momentum of the crypto asset.
According to Glassnode, the short-term holders of BTC presently are dominating the market in terms of profits with their Profit/Loss Ratio trading at 1.2. Glassnode highlighted that the metric recently breached a 1 standard deviation above its 90-day mean, suggesting a possible improvement in investors’ mood.
As Bitcoin continues to showcase growth, this development is believed to impact future price movements and the direction of the market as a whole.
While short-term holders are seeing huge profits due to recent price upswing, Glassnode, in a previous post, pointed out a potential volatility ahead as a result of a decline in Open Interest. A decrease in open interest implies that traders are closing their positions because of heightened price volatility, triggering fear and uncertainty among investors.
The platform noted that during the rally last weekend, about $2.5 billion in futures in futures open interest was closed, which indicates a flushing of short sellers. However, the open interest reduction on the top 3 perpetual exchanges fell short of the 5% level, making the market vulnerable to volatility and possible squeezes on leveraged traders.
BTC’s Price Maintains Recent Pace
Investors’ optimism around Bitcoin is brewing following a recent price rebound witnessed on Monday. The crypto asset has displayed strong price performance ever since, holding firmly above the $65,000 level after recovering the mark.
In the past day, BTC has recorded a nearly 3% increase, trading at $65,660. Meanwhile, in the broader outlook, like the weekly and monthly time frames, the crypto asset has risen by over 5% and 9%, respectively.
Considering Bitcoin’s renewed strength, several analysts believe that the move could be part of a much bigger rally, possibly to new all-time highs in the short term or before the end of the year.
According to Captain Faibik, a crypto expert, BTC’s movement so far has been good. It has formed a wedge pattern and is once again drawing closer to the $68,000 key resistance. If BTC breaks out of the wedge pattern, Faibik is confident that prices could soar to $88,000 and $90,000 in November.
Featured image from Unsplash, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source link
Leave a Reply