- Bitcoin at $116,769 shows a 3.33% decline, but trading volume rises by 36.26%, signaling increased market activity.
- Glassnode data shows Long-Term Holders are taking profits and increasing short-term trading and market volatility.
- RSI at 68.54 suggests Bitcoin is overbought, with MACD signaling bullish momentum, but volatility may lead to quick shifts.
Bitcoin is trading at $116,260, reflecting a 3.33% decline over the past day. The trading volume for the same period stands at $149.82 billion, reflecting a 36.26% uptick. Over the last week, the Bitcoin price has increased by 8.17%. Although the cryptocurrency has declined, it has recorded a positive upward trend in recent days.
Source: CoinMarketCap
Glassnode highlighted a change in market conditions. The ratio of the Long-Term Holder (LTH) and Short-Term Holder (STH) supply has declined severely. This implies that the long-term holders are starting to take profits. The movement from accumulation to distribution can signify a change of mood in the market. Short-term traders now own more coins, and this increases volatility and price volatility.
LTH/STH Supply Shifts
The LTH/STH Supply ratio is one of the main indicators of the market behavior. The increase in this ratio usually reflects that more tokens are being held by long-term investors and helps stabilize the market. However, the declining ratio shows greater short-term trading and usually larger price swings. This rotation indicates that higher volatility may be ahead, and investors are also keen to see an indication that a trend reversal has occurred.
Analyst CJ revealed that even though Bitcoin has recently experienced a price surge, the market is yet to pass out of the woods. He noted that the market may dip further before rising back. He opined that the price could even be as low as the figures of $112,000 and $115,000 before finally rallying. The next significant upside target is the $129,300 mark, provided the market provides favorable conditions. Traders will have to anticipate quality setups before deciding to enter into the new positions.
Source: X
Also Read: Bitcoin Breaks Above $121,000 Eyes $140,000 to $158,000 in Next Rally
Bitcoin Market Momentum and Risks
The Relative Strength Index (RSI) is 68.54, which means that Bitcoin is in the overbought zone. This may indicate a potential pullback for the short term. The Moving Average Convergence Divergence (MACD) has a positive value where the fast line stands at 3,316.68 and the slow line at 2,319.24. This is a sign of bullish momentum, but the market is unstable and may change rapidly.
Source: TradingView
In the coming days, it will be critical to define the future of Bitcoin. When the price drops below $116,000, it may become the start of a bigger trend reversal. But in case of support in the $112,000 and the $115,000 area, then a buying position may arise. This uncertainty in the market would require investors to monitor key support levels, as well as technical indicators, closely.
Also Read: Bitcoin Dominates 43% of Crypto Chatter After $123,000 Spike, What’s Next?