Bitcoin’s[1] price has gone past multiple ATHs over the past two months, with its ATH of $58,640 being the latest one. However, the last 7 days haven’t been the best of times for the world’s largest cryptocurrency, with its price dropping to $45k before recovering to trade around the $47.5k-range at press time. While Bitcoin’s price aspirations in the long term remain unquestionable, are investors confident of the asset in the short-term is a relevant question to ask yourself given the current market sentiment.
In an earlier article[2], it was observed that an emerging trend that has become all the more evident this market cycle involves the key role BTC whales are playing in determining the market’s direction. The data analyzed highlighted how over 100 whale accounts exited the BTC market over the past few weeks after the price climbed to its ATH, before correcting as a result of the sellers in the market.
This was further backed up by Glassnode after its data highlighted how the Bitcoin supply held by large addresses with a BTC balance ranging from 1k – 10k has dipped.
However, this doesn’t necessarily mean that large accounts including institutions are now losing confidence in BTC and are now entering the seller’s market. On the contrary, this is characteristic of Bitcoin’s market cycle. This was evidenced by long-term holder sentiment since it portrays a better and clearer picture of what BTC’s prospects look like in the long run. A way to determine this includes looking at how much confidence investors have in the BTC market.
Taking a look at Glassnode’s market data on Hodler net position change can serve as a good way to understand the coin’s long-term prospects. According to the same,
