Bitcoin Short-Term Holders in Profit as Price Nears $70,000

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This post was originally published on cryptonewsfarm.com

Bitcoin Bull Run Gains Momentum: Short-Term Holders See Big Profits

Bitcoin’s recent price surge appears to have happy holders, with short-term investors sitting on significant profits. This positive sentiment is fueling optimism for a continued uptrend in the world’s leading cryptocurrency.

As Bitcoin breached the $70,000 mark on June 10th, the “realized price” for short-term holders (STHs) also climbed. STHs represent investors who bought Bitcoin within the last 155 days and haven’t sold yet. Their average acquisition price rose 1.5% in line with the overall price increase, according to James Van Straten, an analyst at Cryptoslate.

This group likely includes those who bought Bitcoin in anticipation of the US approving a spot Bitcoin ETF in January, just before it reached its previous all-time high of $69,000 in March.

Looking at a broader timeframe, Van Straten, using data from Glassnode, a market intelligence firm, highlighted that the STH realized price has been steadily increasing, nearing $64,000. This trend signifies a sustained uptrend for Bitcoin over the past year and a half.

“This metric is crucial as Bitcoin recently tested this $64,000 level as potential support,” explained Van Straten. The recent price increase and the corresponding rise in the STH realized price point towards increased short-term buying and growing confidence in Bitcoin’s future.

As long as Bitcoin stays above $64,000 in the coming months, the long-term outlook remains bullish. This price point has emerged as a significant support zone, acting as a floor that could prevent sharp price drops.

Currently, Bitcoin is trading comfortably above $70,000, indicating strong support compared to the resistance it faced during its recent recovery. This positive sentiment is further reinforced by data from IntoTheBlock, a blockchain analytics firm.

Their “In/Out of the Money Around Price” (IOMAP) model reveals a significant buying zone around $69,000. This suggests that roughly 1.3 million Bitcoin were previously purchased by over 2.22 million addresses at this price level.

Should there be any attempt to pull the price lower, it’s likely to be met by aggressive buying from this investor group seeking to protect their profits or potentially buy more at a discount.

Further evidence of bullish sentiment comes from CryptoQuant, a cryptocurrency analysis platform. They observed a spike in the “Taker Buy Sell Ratio” on the Huobi (HTX) crypto exchange.

This ratio is a key indicator for traders, reflecting market sentiment and potential price movements. A ratio above 1 signifies more buying than selling, suggesting bullishness, while a ratio below 1 indicates the opposite.

Independent trader Ali Martinez noted that this ratio on HTX surged to a staggering 730, a rare occurrence that signals exceptionally strong buying pressure. This suggests a significant number of investors are currently accumulating Bitcoin in anticipation of further price increases.

Spikes in buying activity often precede notable price jumps, and this surge could be a precursor to another leg up for Bitcoin.

Another positive development is the increasing number of daily active addresses on the Bitcoin network. According to a chart shared by Martinez and data from Santiment, another blockchain analytics firm, there were 765,480 more active addresses on the Bitcoin network over the last 24 hours compared to the previous day. This surge in network activity is another positive sign that the current Bitcoin bull run has room to continue.

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