Bitcoin crossed the $ 50k mark for the first-time this weekend. The market-leading cryptocurrency, Bitcoin, is now trading at $49,554 and has a profit of 2.2%, and 5.4% in daily charts, respectively.
The general market sentiment has turned bullish but many investors are still unsure if Bitcoin will be in a position to maintain its gains or if the recent price action will become a ‘bulltrap’.
The indicators were neutral at the time of writing. Analyst Santiment had first recorded an increase in total supply of BTC on exchanges. This new influx was recorded by Ali Martinez, a trader who noticed that Bitcoin had surpassed $ 50,000. Notable.
So it seems logical that some holders chose to profit from the recent rally. The strong selling pressure drove Bitcoin to $ 40,000.
Ecoinometrics added additional data to show an increase in Bitcoin addresses as Bitcoin prices approach $ 50,000. This suggests that Bitcoin may be more attractive to investors than it is at the moment.
This could make the rally more sustainable than in previous instances when the price tried and failed to recover from all time highs only for it to crash back to its annual low.
William Clemente, analyst, stated that the Stablecoin Supply Ratio is now rising in support of the bulls. This metric is used to measure demand volume in the crypto market. Many investors rely on stablecoins for Bitcoin and other cryptocurrencies.
Stablecoins are beginning to flow back into markets. pic.twitter.com/qopR7NbITx
– Will Clemente (@WClementeIII) 23 August 2021
The chart shows that the SSR began to fall in January 2021. BTC prices followed a period of sideways movements. The metric is on the decline, but it could have a significant impact in the medium term.
Bitcoin investors who hold long-term Bitcoin profits could be able to make more money.
Glassnode Insights has published a report ConfirmedLTH, long term holders, took profits during the rally. The bulls may continue their push despite the weak selling pressure.
The firm believes that net flows on these exchanges have “stalled” despite the increased supply of Bitcoin. As shown below, Bitcoin’s transactions on the exchanges increased in May and June leading to sales, but then fell in July, August and September.
It is important to note that the magnitude of this influx is not different from the bull market period between December 2020 and April 2021. This is normal behavior.
Glassnode claims long-term BTC owners are more active than previous cycles and can trade coins more frequently. They also believe that the market absorbs the selling pressure.
This indicates that there is “sufficient” demand for these coins, which are now entering a distribution phase. Younger holders were a significant source of demand as the achieved cap-hold metric “swelled” through August.
The total supply of long-term investors still has a high level. Glassnode believes the indicators indicate a bullish conviction.
This shows that the older part has a higher age than the one that is younger. This suggests that the ex-employees spending seen this week is not due to loss of conviction and mass departure, but low coin volume and lower strategic risk. .