At spot rates, Bitcoin is resilient, soaking up selling pressure and bouncing off the 20-day moving average, as seen on the daily chart. With BTC holding above $69,000, it appears that bulls are gearing up for even more gains in the coming days.
For now, BTC has a forceful rejection at $72,000. However, if this level is broken, the coin could easily break past all-time highs and break into novel territory in the second quarter of 2024.
Speculators are pouring in: Will Bitcoin boost profits?
One of the analysts, citing developments in the supply chain predicts that the coin may register higher highs in the coming days. The analyst drew attention to the behavior of short-term BTC holders, noting that their behavior may suggest that there is even more to come.
So far, the realized market capitalization for investors who have held Bitcoin for one month or less has been gaining momentum and rising. Historically, an boost in this indicator, as in 2020, may signal that the market is preparing for growth driven by the inflow of fresh capital.
Typically, realized market capitalization is used to gauge sentiment. It measures the value of BTC in circulation based on its purchase price. In the above case, the realized market capitalization of all BTC acquired in less than one month is increasing, suggesting that more people are buying, confident of what lies ahead.
As other indicators double for short-term holders to show that their realized profit dropped by 32%. This reduction indicates that the holders are take your time lock in profits by selling at current prices.
Instead, they are ready to HODL, expecting further price increases in the future. This bullish sentiment indicates improved market sentiment, reinforcing the positive outlook.
Is Bitcoin Volatility Coming? $72,000 roadblock
As short-term currency holders inflow, there has been a noticeable boost in BTC transfers from spot exchanges to derivatives exchanges.
According to the analyst, this is an emerging trend indicates that more and more investors, mainly whales, are starting to take leveraged positions by placing BTC as margin. Their involvement may lead to greater volatility, which benefits speculators.
While network indicators point to certainty, it remains to be seen how prices will develop in the coming days. For now, the immediate liquidation limit is $72,000.
As Bitcoin bounces off the middle BB, confirmation of the June 3 gains is necessary for the trend to continue. A convincing close above $72,000 would accelerate the price rally, possibly pushing the coin price above $74,000.
Feature image from Canva, chart from TradingView
