BitcoinThe scarcity in the market is growing noticeably as small and large investors continue to accumulate a substantial portion of the available coins, which could strengthen BTC’s value in light of the recent upward price momentum, signaling a possible extension of the uptrend.
A significant drop in the Bitcoin supply ratio
Kyle Doops, a technical analyst and host of the Crypto Banter show, has done just that reported a notable shift in Bitcoin’s key supply metric, specifically the long-term/short-term supply ratio of holders, sparking speculation about BTC’s next price trajectory within the community. The decline in the critical measure generally means that long-term holders become less dominant than short-term holders, indicating a decline in confidence among long-term investors.
According to Kyle Doops, the supply ratio for long-term and short-term bond holders has fallen sharply to around 3.6, marking the lowest level in the current market cycle. This significant drop to a new cycle low highlights a shift in BTC market dynamics.
Moreover, Kyle Doops stated that the development indicates that fewer participants are sticking to long-term investments, and the sell-off is gradually increasing. As a result, the market expert is confident that something big is afoot as the balance between short-term and long-term holdings continues to change.
Other key statistics, such as Bitcoin’s Taker Buy/Sell Ratio, are trending positively as optimism reignites in the market, indicating renewed buying interest among traders and investors. Kyle Doops marked that the metric is on Binance, which tracks the balance between aggressive buy and sell orders, shows that the takers are back at full strength and grabbing buy orders after a decline.
This shift in the way of doing things sentiment implies that demand for BTC exceeds selling pressure, potentially leading to a bullish run. So, traders believe that this is a crucial time to support Bitcoin’s rise, especially as it hovers above the $100,000 price level.
As Bitcoin moves closer to key levels, the increase in demand increases expectations of a potential price breakout. Meanwhile, traders are currently watching for clues as to how this trend could impact BTC’s price direction in the coming weeks.
BTC in the bull market zone
BTCThe company’s share price can fluctuate, which has led to speculation about its near-term trajectory. CryptoQuant, a leading on-chain data platform, reports that the crypto asset is currently in the bull market zone, where the uptrend is dominant.
To transition to the peak period, the short-term moving average of the 30-day Bull-Bear Market Cycle Indicator must exceed the long-term moving average of the Bull-Bear Market Cycle Indicator. The crossover may indicate a more robust bullish trend and increases the possibility of a price increase.
Should the indicator remain higher than the moving average of the 365-day Bull-Bear Market Cycle indicator, the long-term outlook for Bitcoin will remain favorable. However, as prices move closer to the red zone, the platform noted that the probability of a correction may rise.
Featured image from Unsplash, chart from Tradingview.com