As for spot rates, Bitcoin is resilient, coming under selling pressure and bouncing off the 20-day moving average, as seen on the daily chart. As BTC floats above $69,000, the bulls appear to be poised for further gains in the coming days.
Currently, BTC is facing a strong rejection at $72,000. However, if this level is broken, the coin could easily break its all-time highs and head into new territory in the second quarter of 2024.
Speculators Return: Will Bitcoin Extend Its Gains?
Citing on-chain developments, one analyst said pridect The currency may record higher heights in the coming days. The analyst pointed to the behavior of Bitcoin holders in the short term, noting that their behavior may indicate that more is yet to come.
So far, the realized market capitalization of investors who hold Bitcoin for one month or less is gaining momentum and rising. Historically, when this metric rises, as it has in 2020, it may signal that the market is preparing to move higher, driven by an influx of new capital.
Typically, realized market value is used to measure sentiment. It measures the value of BTC in circulation based on the acquisition price. In the above case, the realized market value of all bitcoins acquired in less than one month is rising, indicating that more people are buying, confident of what lies ahead.
As shareholders double in the short term, there are other metrics Displays Their realized profits decreased by 32%. This reduction indicates that the owners No rush To make profits by selling at current prices.
Instead, they are prepared to trade HODL, anticipating further price gains in the future. This bullish sentiment indicates improving market sentiment, which reinforces positive expectations.
Bitcoin volatility coming? Barrier priced at $72,000
As short-term holders return, there is a notable rise in Bitcoin transfers from spot exchanges to derivatives exchanges.
According to the analyst, this is an emerging trend She suggests That more investors, mostly whales, started taking leveraged positions, putting BTC as a margin. Their participation may lead to greater volatility, which benefits speculators.
Although on-chain metrics indicate confidence, it remains to be seen how prices will develop in the coming days. Currently, the immediate liquidation line is $72,000.
With Bitcoin bouncing off the middle BB line, confirmation of the June 3 gains is essential for the trend to continue. A convincing close above $72,000 will accelerate the rally, possibly pushing the coin above $74,000.
Featured image from Canva, chart from TradingView