New Data Shows Increased Buying Activity in Bitcoin Market
Recent data analysis reveals that for every Bitcoin (BTC) sold, approximately 1.28 BTC is being purchased, fueling speculation of a potential surge to new all-time highs in the near term.
Bitcoin’s upward trajectory seems likely to continue despite minor pullbacks, as evidenced by a recent 0.28% decline that is considered a natural part of its overall bullish trend.
Support from Short-term Holders
An analysis by analyst James Van Straten suggests that the BTC market has witnessed significant trading since September, contributing to the stability of Bitcoin’s price. The current Long/Short-term holder ratio stands at 1.28, indicating a clear preference for accumulation over selling.
This means that buyers are stepping in to acquire around 1.28 BTC for every 1 BTC sold, showcasing ongoing demand for the cryptocurrency.
Further examination shows that long-term holders (LTH), who have not transacted for over two years, have been responsible for most sell-offs, while short-term holders (STH) have been driving buying activities.
Between September and now, a net accumulation of 1,081,633 BTC has been recorded, with daily acquisitions surpassing sales. This imbalance toward buying reflects a positive market sentiment, helping Bitcoin maintain its value above $90,000 post its recent ATH.
Positive Indicators for Bitcoin
Analyst Ki Young Ju notes a significant increase in buying activity, with monthly inflows reaching $80 billion, a promising sign for Bitcoin’s adoption and growth. Retail investors are increasingly entering the market and purchasing BTC in large quantities.
According to Ki Young Ju, nearly half of the total capital invested in Bitcoin over the past 15 years has entered the market in this year alone.
If this trend continues, Bitcoin’s long-term prospects appear robust, setting the stage for sustained upward momentum.
Assessing Market Momentum
Despite a slight 0.28% price dip in the last 24 hours, market indicators continue to suggest a positive outlook for Bitcoin.
The funding rate for BTC remains favorable at 0.0100% over the past eight hours, indicating stability in both spot and futures markets and underlining a bullish sentiment that could lead to further price appreciation.
Furthermore, an analysis of BTC’s long-to-short contract ratio indicates a neutral stance at 1, presenting a potential pivot point for the market’s direction.
Given Bitcoin’s strong long-term outlook and positive funding rate, the current price fluctuation is likely a temporary retreat, with bullish investors maintaining control.