Short Term Bitcoin [BTC] keepers can run the next bull run- Here’s how to do it
- BTC’s next bull run could happen if short-term holders spend less and accumulate more.
- The last few days have been characterized by the output of “weak hands”.
According to the pseudonymous CryptoQuant analyst Crazzy blockk, an assessment of key values on the chain suggested that short-term Bitcoin [BTC] holders could be instrumental in driving the next bull run for the king coin if they continue to accumulate and spend less.
To arrive at this conclusion, the analyst examined BTC’s calculations for used output profit (SOPR), adjusted used output profit (aSOPR) and unspent transaction output (UTXO).
According to the SOPR, ASOPR and STH-SOPR calculations, short holders have used their profits. This has led to an increase in BTC accumulation and a reduction in selling pressure in recent weeks, Crazzy blocck found.
Read Bitcoins [BTC] Price prediction 2023-24
He further stated:
“In the coming months, if short-term owners are interested in accumulating and entering this level and are not interested in selling in exchange for price growth, it will be a bullish sign for Bitcoin. These factors usually lead to short-term owners will become long-term owners, according to bitcoin’s past price cycles.”
Source: CryptoQuant
Capitulation is the word of the day
It was February 24 reported that in January 2023, year-over-year growth in the personal consumption goods (PCE) price index in the US accelerated to 5.4%, up from a revised 5.3% increase in the previous month.
The prices of goods rose by 4.7%, down from 5.1% in December, while the prices of services increased by 5.7%, up from 5.4%.
The increase in the PCE index by 5.4% year-on-year in January 2023 indicated that the prices of goods and services have gone up, which may lead to a decline in the purchasing power of consumers.
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Following the announcement, short-term traders of BTC began selling their holdings as a hedge against potential losses if the price of BTC dropped significantly. Per data from CoinMarketCap, BTC’s price has since fallen by 3%.
According to CryptoQuant analyst JayBot:
“Perhaps Bitcoin can continue to rise after overcoming the selling by short-term holders.”
Source: CryptoQuant
Furthermore, an assessment of BTC’s Network Profit/Loss ratio (NPL) confirmed increased selling by “weak hands” in recent days. According to data from SentimentBTC’s NPL suffered a significant drop on February 25th.
The metric falls in NPLs are often associated with short periods of capitulation by “weak hands” and the resurgence of “smart money” in the market.
As a result, these falls are usually accompanied by local setbacks and phases of price recovery. Over the past 24 hours, BTC’s value has risen by 0.4%.
Source: Sentiment
