- Bitcoin was up by more than 3% in the last 24 hours.
- Technical indicators hinted at a continued price uptick.
After a week-long price decline, Bitcoin [BTC] finally gained bullish momentum as its value went above the $62k mark.
Though the recent uptick looked optimistic, the latest data suggested that short-term holders were still at a loss. Does this mean investors will continue to hold BTC?
Short-term holders selling Bitcoin
Bitcoin bulls finally stepped in as the coin’s daily chart turned green. According to CoinMarketCap, BTC’s price had risen by nearly 3% in the last 24 hours.
At the time of writing, the coin was trading at $62,785.74 with a market capitalization of over $1.24 trillion.
In the meantime, Ali, a popular crypto analyst, recently posted a tweet highlighting the state of short-term holders.
As per the tweet, STHs face a -6.78% loss if they sell today. This bull cycle’s maximum pain point has been around -12%.
Since STHs were at a loss, AMBCrypto planned to have a closer look to find out whether they were selling their holdings at a loss.
Our look at Glassnode’s data revealed that BTC’s short-term holders’ supply declined sharply over the past two weeks. This clearly suggested that STHs were selling Bitcoin.
Source: Glassnode
Will sell-offs push BTC down again?
Though STHs were on a selling spree, that was not the case with long-term holders. As per CryptoQuant’s data, BTC’s binary CDD was green.
This meant that long-term holders’ movements in the last seven days were lower than average. They have a motive to hold their coins.
Apart from this, supply held by LTHs also increased over the past two weeks, hinting at accumulation.
Source: Glassnode
AMBCrypto then checked other metrics to find whether selling sentiment was dominant in the market or buying sentiment.
As per our analysis of CryptoQuant’s data, BTC’s exchange reserve was increasing, meaning that investors were dumping BTC.
On top of that, both BTC’s Coinbase premium and Korea premium were red, suggesting that selling sentiment was dominant among U.S. and Korean investors.
Source: CryptoQuant
This might soon have a negative impact on BTC’s price. In fact, BTC’s dear and greed index had a value of 85% at press time, meaning that the market was in an “extreme greed” phase.
Whenever the metric reaches that level, it indicates the possibility of a price correction.
Source: CFGI.io
Therefore, AMBCrypto analyzed Bitcoin’s daily chart to see whether the bull rally would end soon. As per our analysis, most of the indicators remained bullish on BTC.
Read Bitcoin’s [BTC] Price Prediction 2024-25
For instance, both its Relative Strength Index (RSI) and Money Flow Index (MFI) gained upward momentum.
Moreover, the MACD displayed a bullish crossover, indicating a continued price rise. If that happens, then BTC’s price might soon touch $66k.
Source: TradingView
