- Bitcoin entered the early stages of a bull phase, as per CryptoQuant’s data.
- A decline in Bitcoin returns compared to other cycles was observed.
Bitcoin has entered the early stages of a bull phase, according to recent data provided by CryptoQuant.
Now, you might ask for a more detailed explanation. Well, for that purpose, consider the bull/bear market indicator- It is a metric that compares the number of days the market spends in a bullish phase to the number of days it spends in a bearish phase.
The reading of this metric suggested that the market could continue to move in a positive direction for a while before things take a bearish turn.
Source: Crypto Quant
BTC holders await patiently
However, a lot of Bitcoin holders still weren’t profitable, suggesting that they would be waiting for the prices to go further up before selling their positions.
According to ecoinometrics’ data, there was a major lag observed in Bitcoin’s returns compared to other cycles. This could be due to several factors, such as investors’ sentiment, regulatory environment, and economic conditions.
Big lag in Bitcoin’s returns compared to previous cycles. pic.twitter.com/QUZA7CFkon
— ecoinometrics (@ecoinometrics) January 26, 2023
One of the reasons for the growing prices could be the lack of movement from whales, which are large holders of Bitcoin. These whales have been 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 be contributing to the current bullish phase.
Read Bitcoin’s Price Prediction 2023-2024
Additionally, the issuance of Bitcoin across various addresses also played a role in the current BTC price rally. For example, Shrimps, which are smallholders of Bitcoin, added 107% of top Bitcoin’s issuance, while Crabs, which are medium-sized holders, added 120% of issuance.
Source: glassnode
Traders turn skeptical
Despite the growth of BTC’s prices and issuance, the trust of traders in BTC declined. The number of long positions on Bitcoin tumbled as prices rose, per coinglass data.
However, the number of long positions still outnumbered the number of short positions by a small margin. But this could change soon if the number of short positions against BTC grows.
How much are 1,10,100 BTC worth today?
Source: coinglass
It remains to be seen whether the traders turn out to be right about the future of Bitcoin in the long run.
Well, at the time of writing, the price of Bitcoin was $23,183.17, and it increased by 2.28% in the last 24 hours according to CoinMarketCap.