Amidst the recent upward price movement updates Bitcoinsdemand for the largest cryptocurrency asset among short-term holders has seen a significant increase, indicating strong optimism about BTC’s growth potential in the near future.
Short Term Holder Demand For Bitcoin Rebounds
Axel Adler Jr., a macro researcher and writer at leading on-chain company CryptoQuant, recently reported that Bitcoin’s average demand from short-term holders has returned after seeing positive progress in the 30D Change in BTC Short-Term Holder Supply metric after a period of decline.
According to market data, these investors, typically identified based on their holding of BTC for less than 155 days, are actively purchasing the cryptocurrency once again. The rebound reflects renewed interest from retail shareholders, which could be fueled by increased optimism regarding possible price increases in the days ahead.
After analyzing thoroughly Short Term Holders 30D Supply Change Metric, the expert highlights that the indicator has rebounded over the past 18 days even though the supply change oscillator has consistently been in negative territory. He further highlighted that supply witnessed a growth of around 15% or a daily increase of 0.95% during the period.
So far, investors and traders are closely watching the development because the revival could signal that a potential price increases will occur soonespecially during times of uncertainty in the broader market.
Bitcoin short term holders demands increases as market volatility gradually returns, as Adler pointed out in a previous post. “Since volatility has returned to the market and is going both ways, be sure to assess risk when making trading decisions,” he said.
Adler noted that leverage volume on the top 3 crypto exchanges is currently at 32%. Meanwhile, a spike above 55% might cause a “liquidation cascade.”
BTC All-Time High Coming Soon?
As anticipation of a major rally continues to grow, Michael Van De Poppe, market expert and Chief Information Officer (CIO) of MN Consultancy has delved into BTC’s recent performance, predict that digital assets will soon reach new peaks. Van De Poppe highlighted that Bitcoin is in a period of consolidation, meaning the market may “see some weakness.”
However, considering upcoming important events such as the United States Presidential election and its potential interest rate reduction from the Federal Reserve (Fed)Van De Poppe believes that the event could trigger a major price move for Bitcoin in the coming weeks, noting that a new all-time high “it is already near.”
At the time of writing, BTC is trading at $67,899, showing a gain of 0.70% in the past day. Although the price is slowly rising, BTC trading volume shows a negative outlook, falling by 2% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
