- Bitcoin entered the early stages of a bull phase, according to data from CryptoQuant.
- A decline in Bitcoin returns compared to other cycles has been observed.
According to the latest data from CryptoQuant, Bitcoin has entered the early stages of a bull market.
Now you might ask for a more detailed explanation. For this purpose, consider the bull/bear market indicator. It is a metric that compares the number of days the market spends in an up phase to the number of days it spends in a down phase.
The reading of this metric suggested that the market could move in a positive direction for a while before things take a bearish turn.
Source: CryptoQuant
BTC holders are patiently waiting
However, many Bitcoin holders were still not profitable, suggesting that they would wait for prices to continue rising before selling their positions.
According to data from Ecoinometrics, a large lag has been observed in Bitcoin’s returns compared to other cycles. This could be due to several factors such as B. investor sentiment, the regulatory environment and economic conditions.
Big lag in Bitcoin’s returns compared to previous cycles. pic.twitter.com/QUZA7CFkon
— Econometrics (@ecoinometrics) January 26, 2023
One of the reasons for the rising prices could be the lack of movement of whales, which are big owners of bitcoin. These whales are known to manipulate the market by buying and selling large amounts of bitcoin. Possibly their refusal to sell their positions in the current market could contribute to the current bullish phase.
Read Bitcoin price prediction 2023-2024
In addition, the issuance of bitcoin through various addresses also played a role in the current BTC price rally. For example, Shrimp, which are smallholders of Bitcoin, contributed 107% of top Bitcoin’s issuance, while Crabs, which are medium-sized holders, added 120% of issuance.
Source: glass node
Traders become skeptical
Despite the surge in prices and issuance of BTC, traders’ confidence in BTC declined. The number of long positions on Bitcoin plummeted as prices rose, according to Coinglass data.
However, the number of long positions still slightly exceeded the number of short positions. However, this could soon change as the number of short positions against BTC grows.
How much is 1,10,100 BTC worth today?
Source: coin jar
Whether traders will be right about Bitcoin’s future in the long term remains to be seen.
Well, at the time of writing, the price of Bitcoin is $23,183.17 and is up 2.28% in the last 24 hours, according to CoinMarketCap.
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