Bitcoin Short-Term Holders Reignite Demand as Price Rises

In light of the recent surge in Bitcoin prices, the interest in the largest cryptocurrency among short-term holders has seen a significant uptick, indicating a strong belief in BTC’s potential for growth in the near future.

Demand for Bitcoin Among Short-Term Holders Recovers

Axel Adler Jr., a macro analyst and contributor at the prominent on-chain analytics company CryptoQuant, recently shared that the average demand for Bitcoin from short-term holders has bounced back after observing favorable changes in BTC’s Short-Term Holders Supply 30D Change indicator following a previous decline.

Data from the market shows that these investors, typically characterized by holding BTC for less than 155 days, are once again actively purchasing the cryptocurrency. This resurgence signals renewed interest from retail holders, potentially sparked by increasing optimism regarding a forthcoming price surge.

After a detailed examination of the Short-Term Holders Supply 30D Change indicator, the expert pointed out that the metric has experienced a recovery over the last 18 days, even though the supply change oscillator has consistently remained in negative territory. He also noted that the supply increased by approximately 15%, or a daily increment of 0.95%, during this timeframe.

At this stage, investors and traders are keeping a close eye on the situation, as this rebound could indicate the possibility of a price surge on the horizon, particularly amidst broader market uncertainties.

The demand among Bitcoin’s short-term holders is increasing as market volatility starts to return, as noted by Adler in another earlier post. “With the return of volatility in the market, it’s essential to evaluate risks while making trading choices,” he advised.

Adler mentioned that the leveraged volume across the top three cryptocurrency exchanges currently stands at 32%. A surge beyond 55% may trigger a “cascade of liquidations.”

Will BTC Reach a New All-Time High Soon?

As excitement for a significant rally builds, Michael Van De Poppe, a market analyst and Chief Information Officer (CIO) at MN Consultancy, has explored the recent performance of BTC, forecasting that the cryptocurrency could achieve a new peak shortly. Van De Poppe emphasized that Bitcoin is currently in a consolidation phase, implying that the markets might “experience some weakness.”

Nonetheless, in light of significant upcoming events such as the United States Presidential election and a potential interest rate cut from the Federal Reserve (Fed), Van De Poppe expresses confidence that these events could trigger substantial price movements for Bitcoin in the coming weeks, asserting that a new all-time high “is imminent.”

At the time of this writing, BTC was trading at $67,899, reflecting a 0.70% increase over the past day. While prices show a gradual upward trend, BTC’s trading volume paints a somewhat negative picture, having decreased by 2% in the last 24 hours.