Bitcoin [BTC] gives way to bullish sentiment: Bye-bye, bear market?
- On-chain data suggested that the bear market might be nearing its end.
- Growing open interests and positive funding rates hinted at the likelihood of claiming the $30,000 price mark.
For the first time in over two years, the short-term holder realized price of Bitcoin [BTC] has surpassed the long-term holder’s realized price, a signal that has previously marked the end of previous bear markets.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Per data from on-chain analytics platform Glassnode, the short-term holder realized price was $21,742, while the long-term holder’s realized price for the king coin was $21,334.
When the short-term holder realized price of BTC exceeds the long-term holder’s realized price, it means that the average profit of people who have recently bought BTC (short-term holders) is higher than the average profit of people who have held the leading coin for a longer period (long-term holders).
BTC’s historical performance revealed that this had marked the BTC’s transition from a bear market to a bull market three times.
Further, CryptoQuant pseudonymous analyst Tarekonchain assessed BTC’s Spent Output Profit Ratio (SOPR) and found that the metric sat at a low similar to that which it registered in November 2022.
Opining that 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 were selling their coins at a loss. Today, the SOPR has again reached a similarly low level, which could potentially suggest a bullish sentiment in the market.”
Might be well positioned for a sustained rally
According to data from Santiment, as of this 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 drove up demand for the coin.
It was, however, pertinent to note that BTC’s weighted sentiment was on a steep decline since 12 March. Moreover, as profit-taking intensified in the last month, the coin’s weighted sentiment dropped by 87% in the last three weeks.
With many still waiting for BTC to claim the $30,000 price mark, the Open Positions count has increased by 31% in the past 20 days, per data from Coinglass.
How much are 1,10,100 BTCs 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 growing investor demand and interest in the coin as traders open positions in anticipation of price movements.
Positive funding rates during that period suggested that many had placed their bets in favor of a positive price rally.