Bitcoin: Evaluation of current market conditions in the wake of R&D
- New data suggests that Bitcoin’s bull market may continue.
- Short positions against Bitcoin rise as the MVRV ratio increases.
Bitcoin has undergone significant price fluctuations in recent months. This has raised speculation about the future prospects. However, data from CryptoQuant suggests that Bitcoin may now be in a bull market. And this can go on for a while.
Read Bitcoin Price Prediction 2023-2024
The bulls take responsibility
CryptoQuant’s cycle indicator has been trending upwards for the past few days. This suggested a positive outlook for BTC.
In addition, short-term Bitcoin holders have started to make money, with data from CryptoQuant showing a 7.6% increase in profits in recent months. This is another sign that shows – BTC is entering a bull market.
Source: Crypto Quant
However, an opposite view was noted recently. In recent days, Bitcoin’s exchange influx has increased with a significant portion of the increase coming from whales and miners. This has led to the highest inflow in 2023.
Source: CryptoQuant
Meanwhile, at press time, the amount of HODLed BTC reached a 5-year high of 7.6 billion BTC. Activity on the network also began to increase, mainly due to the success of inscriptions and sayings. Consequently, the overall fees collected on the Bitcoin network began to rise.
📈 #Bitcoin $BTC Total Fees Paid (7d MA) just hit a 15-month high of $37,618.98
Previous 15-month high of $37,519.27 was observed on March 21, 2023
See calculation: pic.twitter.com/cDOOV29dOo
— glassnode alerts (@glassnodealerts) March 23, 2023
As interest in BTC and its network begins to rise, so does the MVRV ratio. The increasing MVRV ratio of Bitcoin suggested that the majority of Bitcoin holders are now incentivized to sell their holdings as they reach a profitability mark.
Source: Sentiment
Goes short
Interestingly, the increasing MVRV ratio may be one of the reasons why many traders have started taking short positions against BTC.
According to coinglass’ data, the percentage of short positions taken against BTC on the Binance platform increased from 30% to 53.7% over the past few weeks.
This sudden increase in short positions may mean that many traders have started to become skeptical of Bitcoin’s growth.
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Source: coinglass.com
