Bitcoin [BTC] Give way to bullish sentiment: Bye-bye, bear market?

• Data from the chain suggested that the bear market may be coming to an end.
• Increasing open interests and positive funding rates suggested the likelihood of claiming the $30,000 price tag.

For the first time in over two years, the short-term holder realized the price of Bitcoin [BTC] has surpassed the long-term owner’s realized price, a signal that has previously marked the end of previous bear markets.

Read Bitcoins [BTC] Price prediction 2023-24

Per data from the chain analysis platform Glassnode, the short-term holder’s realized price was $21,742, while the long-term holder’s realized price for the king coin was $21,334.

Source: Glassnode

When the short-term owner realized price of BTC exceeds the long-term owner realized price, it means that the average profit of people who recently bought BTC (short-term owners) is higher than the average profit of people who have held the leading coin for a longer period of time (long-term holders) .

BTC’s historical performance revealed that this had marked BTC’s transition from a bear market to a bull market three times.

Furthermore, CryptoQuant pseudonymous analyst Seashell chain assessed BTC’s Spent Output Profit Ratio (SOPR) and found that the calculation was at a low level similar to what it recorded in November 2022.

Tarekonchain believed this signaled the re-emergence of a bullish phase, Tarekonchain said,

“It is worth noting that whenever the SOPR reaches a very low level, the bitcoin price starts to rise again. For example, when the price of bitcoin reached $16,000 in November 2022, the SOPR was at a very low level, indicating that many investors sold their coins at a loss. Today, SOPR has again reached a similar low, potentially indicating bullish sentiment in the market.”

Source: CryptoQuant

May be well positioned for a sustained rally

According to data from Sentiment, at the time of writing, BTC’s weighted sentiment was positive at 0.901. When a coin’s weighted sentiment is positive, it often indicates the presence of bullish sentiment in the market, which attracted investors and increased demand for the coin.

However, it was relevant to note that BTC’s weighted sentiment was on a steep decline since March 12. Additionally, as profit-taking intensified over the past month, the coin’s weighted sentiment fell 87% over the past three weeks.

Source: Sentiment

With many still waiting for BTC to claim the $30,000 price tag, the number of open positions has increased by 31% over the past 20 days, per data from Coinglass.

How much is 1,10,100 BTC worth today?

An increase in a coin’s open interest suggests that there are more open positions or contracts for that coin in the futures market. This could signal increasing investor demand and interest in the coin as traders open positions in anticipation of price movements.

Source: Coinglass

Positive financing rates in this period suggested that many had bet in favor of a positive price rise.

Source: CryptoQuant