Key Points
- Bitcoin was trading below $66k, with $71k highlighted as a key level for a bullish reversal.
- Short-term holder supply declines, indicating growing market confidence, while open interest shows mixed signals.
Bitcoin’s Recent Performance
Bitcoin [BTC] experienced a slight decline, with its trading value at around $61,639, marking a 3.5% decrease within the past day. This decline followed a notable recovery last week, where the cryptocurrency reached up to $66,000.
Regardless of the recent dip, Bitcoin’s value had increased by 9.4% in the past two weeks. Analysts are observing several trends and key levels for Bitcoin holders to consider while evaluating the asset’s future price trajectory.
Insights from Veteran Traders and Analysts
Peter Brandt, a veteran trader, emphasized the importance of monitoring whether BTC closes above $71,000, confirmed by a new all-time high (ATH). This would indicate that the upward trend since November 2022 is still ongoing.
Recent data from CryptoQuant showed a decrease in the total supply of Bitcoin held by short-term holders (STHs), suggesting growing market confidence. Axel Adler Jr, a CryptoQuant analyst, stated that this decline indicates fewer BTC are circulating among STHs who are opting to hold their assets (HODL).
Willy Woo, a prominent crypto analyst, suggested that the mid-term outlook is shifting from bearish to neutral and could soon become bullish. He also predicted that a new all-time high for Bitcoin may take a while, with the next bullish attempt potentially coming after a “cool-off” period of 1-3 weeks.
Open Interest and Active Addresses
Market metrics such as open interest and the number of active Bitcoin addresses provide additional insight. Open interest, indicating the total number of outstanding derivative contracts, has recently declined by 4.52%. However, open interest volume has surged by 61.23%, suggesting growing interest in Bitcoin derivatives.
The number of active Bitcoin addresses has been showing signs of recovery, with over 863,576 active addresses as of press time. This increase may signal renewed market engagement and potentially indicate a shift towards increased usage and trading among Bitcoin holders.