At spot rates, bitcoin is resilient, absorbing selling pressure and bouncing off the 20-day moving average, as evidenced on the daily chart. As btc floats above $69,000, it appears the bulls are gearing up for even more gains in the coming days.
For now, btc has a strong rejection at $72,000. However, if this level is broken, the coin could easily surpass all-time highs and reach new territory in the second quarter of 2024.
Speculators Are Returning: Will bitcoin Extend Profits?
Citing on-chain developments, an analyst x.com/AxelAdlerJr/status/1797511378053574954″ target=”_blank” rel=”noopener nofollow”>predict that the currency could record higher highs in the coming days. The analyst pointed to the behavior of btc holders in the short term and noted that their behavior could suggest that there is still more to come.
So far, the realized market capitalization for investors holding bitcoin for a month or less has been gaining momentum and increasing. Historically, when this metric rises, such as in 2020, it could indicate that the market is preparing to rise, driven by an influx of fresh capital.
Typically, realized market capitalization is used to measure sentiment. It measures the value of btc in circulation based on its acquisition price. In the case above, the realized market capitalization of all btc purchased in less than a month is increasing, suggesting that more people are buying, confident in what awaits them.
As short-term holders double down on bets, other metrics x.com/AxelAdlerJr/status/1797503373857677446″ target=”_blank” rel=”noopener nofollow”>show that its realized profit has decreased by 32%. This reduction indicates that the holders are don't rush secure profits by selling at current prices.
Instead, they are ready to HODL, anticipating further price gains in the future. This bullish sentiment points to an improvement in market sentiment, reinforcing the positive outlook.
Is bitcoin Volatility Coming? Barricade at $72,000
As short-term holders return, there is a notable increase in btc transfers from spot to derivatives exchanges.
According to the analyst, this emerging trend x.com/AxelAdlerJr/status/1797499427495813160″ target=”_blank” rel=”noopener nofollow”>suggests that more investors, mostly whales, are starting to take leveraged positions, placing btc as margin. Their commitment could generate more volatility, which would benefit speculators.
Although on-chain metrics point to confidence, it remains to be seen how prices will evolve in the coming days. For now, the immediate settlement line is at $72,000.
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As bitcoin rebounds from mid-BB, June 3 gains need to be confirmed for trend continuation. A convincing close above $72,000 would accelerate the bullish move, possibly lifting the coin above $74,000.
