Bitcoin reached its All-Time High (ATH) value of over $31,000 for the year in the last week.
Bitcoin is currently in a “significant upward trend,” with its price surging by 15.6% in the past week and 17% in the last 14 days.
In terms of value growth since the beginning of the month, Bitcoin (BTC) has experienced the largest rebound in the overall market of digital currencies. Following an extended stretch of steady uptrends supported by the bulls, the leading cryptocurrency reached its All-Time High (ATH) value of over $31,000 for the year in the last week.
According to analysts, this recent small-scale bullish market, driven by numerous requests for bitcoin exchange-traded funds (ETFs), is causing Bitcoin (BTC) and Ethereum (ETH) to experience their most substantial weekly growth since March. According to the data provided, Indices indicate that the value of Bitcoin is currently in a “significant upward trend,” with its price surging by 15.6% in the past week and 17% in the last 14 days.
Additionally, analysts say the market will stabilize in the upcoming weeks. If Bitcoin can sustain a value above $30,000 for an extended period, there is a possibility of witnessing a further upward movement. On the downside, the support level of $27,000 is currently quite strong.
According to information provided by CoinGlass, traders with short positions had a slight advantage during the weekend. Within the last 24 hours, approximately $9.5 million of long positions were liquidated, while around $7.10 was liquidated from short positions. Open interest has increased from $11.7 billion at the beginning of last week to $14.6 billion currently.
Indications On The On-Chain Signal Point Toward Further Upward Movement
Currently, Bitcoin is trading at a value of $30,249.86. The analysis provided by Glassnode, a provider of crypto market analytics, reveals that the increase in BTC’s price from $25,000 to over $30,000 has resulted in more than 1.8 million coins held by Short-Term Holders (STH) becoming profitable.
The recent #Bitcoin move from $25K to above the $30K level has sent an additional +1.8M (+66.4%) Short-Term Holder coins into profit, placing the percentage of STH Supply in profit at 96.9% (2.6M BTC).— glassnode (@glassnode) June 25, 2023
With respect to historical precedence, previous periods of unilateral STH… pic.twitter.com/D5VobbqVek
Approximately 96.9% of Bitcoin addresses are profitable in the short-term supply category. This signal holds significant positive implications that deserve attention. Additionally, when concerns surrounding an asset diminish, it often leads to an influx of capital. In the case of Bitcoin, we observe a similar pattern. Specifically, the recent price rebound and successful retesting of a crucial resistance level after months may instill greater confidence in traders. As a result, they become more inclined to participate in the market.
Despite the optimistic sentiments surrounding Bitcoin, its trading volume has not aligned with this bullish trend, currently experiencing a 42% decrease. However, a substantial leap can be anticipated if the daily buying volume keeps up with the ongoing price momentum.
Favorable Fundamentals Strengthening Bitcoin’s Growth Prospects
While the on-chain and technical indicators support the anticipated growth of Bitcoin, there are also favorable fundamental factors that contribute to its potential growth in the near future. For instance, the application for a spot Bitcoin ETF product by BlackRock, the world’s largest asset management company, along with similar initiatives from other money managers, reinforces positive sentiment across the market. Furthermore, the investments made by Tether in Bitcoin mining also contribute to boosting overall confidence.
In addition, a notable trend is the reluctance of long-term HODLers (those who hold Bitcoin for extended periods) to sell their holdings, as exemplified by MicroStrategy. This commitment to long-term holding has the potential to reduce the overall supply of Bitcoin, further strengthening its market dynamics. The combination of these positive developments surrounding Bitcoin solidifies the bullish outlook for the medium to long term.