- Bitcoin’s short-term holders’ balances have risen 25% since September, indicating growing activity.
- Short-term traders typically invest during market lows and increase speculation near market peaks for quick gains.
- Higher highs and lows in Bitcoin’s price action suggest a potential bullish trend if key levels hold.
According to the analytical platform IntoTheBlock, short-term traders are active in the market again, while the stake of long-term ones remains low. On Wednesday, the platform pointed to a 25% rise in the balance of short-term Bitcoin holders since September. This activity increase points towards change in behavior of the speculators as they try to build their position for the change in the market direction.
Previous performances have shown that short-term focused investors usually invest more during periods of low market conditions to gain from higher returns. Furthermore, trading based on speculation among these traders is known to typically increase prior to market tops in hope of reaping fast profits. Despite the current rise being less steep than prior market cycles, the rise of short-term investors’ BTC balance also points to higher conviction in the BTC price trend.
Bitcoin Price Targets
Egrag Crypto presented the opinion on the current state of Bitcoin based on the 3-day chart. In a recent X post he explained that Bitcoin had reached the first target of $66,500 on the daily chart, yet more information would be required after the next 3-day break.
Bitcoin shows some demand at the Fibonacci level of 0.786, around $67,823, breaking this level with a daily close will open the door for more buying pressure. Continuation of the bulls’ advances within the $65,954 to $67,823 range (Fib 0.702) also points towards a bullish trend for token price.
Potential Bitcoin Trend Reversal
Apart from these clear levels, another sign of a possible trend reversal is observed in the price action of Bitcoin with higher highs and higher lows. This could be an indication of further upward movement of the price of BTC if it is able to remain above the critical “No-No Zone” which could threaten this upward movement. This level of support is important in order to sustain the upward price move.
While short run fluctuations are a possibility, in the longer run the price structure of cryptocurrency seems more and more stable. Some changes may be observed during potential retests, but the further prognosis is promising. At the time of writing, BTC is at trading $67,650, which is 3.05% up in the last 24 hours.
In the current market situation, actions of these short-term traders may turn out to be critical for the future of Bitcoin. Investors and people in the market keep a very close eye on what it does, as it may signal the start of a new market cycle.
