Following Bitcoin (BTC)'s recent price movement, the coin's short-term holders are now recording profits, a situation that could herald a crucial trend reversal.
As spotted According to Julio Moreno, head of research at CryptoQuant, this on-chain positioning has signaled a price correction in the past, so the possibilities at this point are also likely.
The researcher noted that the likelihood of Bitcoin reversing its trend is higher given the current “cycle phase” the market is currently in.
Is a Bitcoin Reversal Imminent?
In recent months, Bitcoin has impressed observers with its price rising from $26,858 on October 16 to today's trading price of $42,783.
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This jump is an ideal setup for short-term holders, as Moreno discovered. As shown in a chart he shared from January 2015, a reversal typically occurs whenever the price of Bitcoin rises to a local high.
The chart shows that the first parabolic run from January 2015 to a peak in January 2018 was accompanied by a reversal.
This trend was also observed from January to July 2019. With Bitcoin soaring from January 2023 to date, it has recorded a growth of 141% during this period.
Bitcoin STH realized price and profit|loss margin| CryptoQuant
While the forecast of a likely reversal is valid based on the historical setup, the timeline remains, which is subject to change if the bears eventually overtake the market.
At the time of writing, Bitcoin was selling for $42,712, down 0.99% in 24 hours. with market cap similarly falling to $834,833,566,872. The coin's trading volume fell by 4.8% to $24,618,694,222.
Bitcoin outlook and underlying triggers
According to data insights shared by Julio Moreno, Bitcoin price may have risen to high levels in the short term.
There is a possibility that the cryptocurrency will accelerate even more in the future due to the growing hype around possible approval of a Bitcoin Spot Exchange Traded Fund (ETF) product by the US Securities and Exchange Commission (SEC).
If the regulator captivates the market by approving the product, it could usher in a new era that confirms the emergence of a bull run. If this scenario comes true, there is a high probability that Bitcoin price will test the $100,000 mark predicted According to some observers, it will be higher.
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Disclaimer: This content is for informational purposes and should not be considered financial advice. The views expressed in this article may contain the personal opinion of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic assumes no liability for any financial losses.
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