Given that the market has recently increased the price Bitcoin back to the key $65,000 level, traders and investors are currently seeing huge gains on their positions, especially holders of crypto assets in the brief term.
Brief-term Bitcoin holders in green
Recent report from the world’s leading on-chain and data platform, Glassnode, is reporting significant profit growth advantage for short-term Bitcoin holders. This augment in profit advantage is due to the recent positive price movement in BTC and the general market.
After weeks of volatility and consolidation, the value of BTC increased significantly, taking over a larger share short-term investors making profits. As prices rise, short-term investors are taking advantage of the situation, further driving the price of crypto assets higher.
According to Glassnode, short-term BTC holders currently dominate the market in terms of profits, with a P/L ratio of 1.2. Glassnode highlighted that the metric recently exceeded 1 standard deviation above its 90-day average, suggesting a possible improvement in investor sentiment.
As Bitcoin continues to show growth, it is believed that this development will have an impact on future price movements and the direction of the market as a whole.
While short-term holders are seeing huge gains from the recent price surge, Glassnode in a previous post: he noticed potential future volatility as a result of a decline in Open Interest. A decline in the number of open positions means that investors are closing their positions due to the increased price variabilitycausing fear and uncertainty among investors.
The platform noted about $2.5 billion in futures contracts during last weekend’s rally open interest has been shut down, indicating a wave of brief sellers. However, the reduction in open interest on the three largest perpetual exchanges did not reach the 5% level, leaving the market vulnerable to volatility and possible downward pressures. traders using leverage.
BTC price maintains recent momentum
Investor optimism around Bitcoin is growing following the recent price rebound we witnessed on Monday. Since then, the cryptocurrency has shown sturdy price performance, holding well above the $65,000 level after regaining the mark.
Last day BTC saw an augment of almost 3%, reaching a price of $65,660. Meanwhile, on a broader perspective such as weekly and monthly time frames, crypto assets rose by over 5% and 9% respectively.
Given Bitcoin’s renewed strength, several analysts believe the move could be part of a much larger rally, perhaps up-to-date all-time highs at brief notice or before the end of the year.
According to For Captain Faibik, a cryptocurrency expert, BTC’s movement so far has been good. A wedge formation has formed and is once again approaching the key resistance at $68,000. If BTC breaks out of the wedge, Faibik believes prices could rise to $88,000 and $90,000 in November.
Featured image from Unsplash, chart from Tradingview.com
