- Bitcoin price crossed $67,000, indicating further upward movement
- Several metrics also appeared positive for the cryptocurrency
While Bitcoins [BTC] As the price remained in a consolidation phase, short-term holders sold a significant amount of BTC on exchanges at a loss. However, the sudden selloff could actually prove to be good news for BTC as it can help initiate a bullish rally in the coming days.
Short-term holders are selling Bitcoin
Alex, a popular crypto analyst, recently divided an interesting development in terms of short-term holders. According to the tweet, from March 19 to April 4, STHs sold 106.8K BTC at a loss on exchanges.
What is interesting here is that STHs also sold BTC at a loss in January. When this happened, the price of BTC gained bullish momentum, which eventually led to Bitcoin reaching a new all-time high. Therefore, this is a hopeful sign of a price increase in the coming days.
However, it is also important to note that the amount of BTC sold by STHs in January was almost three times the amount they sold between March and April.
Additionally, AMBCrypto's look at CryptoQuant's data revealed that Bitcoin's short-term holder, SOPR, was trending higher after a decline on April 2. Historical data suggests that whenever these metrics increase, BTC price also follows a similar increasing trend.
Source: CryptoQuant
In fact, at the time of writing, BTC’s price action was already showing signs of recovery as it crossed $67,000 – a psychological resistance level. It rose almost 2% on the charts in the last 24 hours alone.
Is a bull rally just around the corner?
AMBCryptos analysis by CryptoQuant Data revealed that BTC's foreign exchange reserves have also fallen, meaning that overall selling pressure is low. The coin’s binary CDD was green, meaning long-term holders’ movements over the last 7 days were below average.
Everything also looked optimistic on the derivatives side. The funding rate of BTC increased. However, Bitcoin’s buyer-buy/sell ratio was alarming as it suggested that selling sentiment prevailed in the derivatives market.
Source: CryptoQuant
To better understand whether a rally is possible, AMBCrypto analyzed BTC's daily chart. Our analysis found that both BTC's Chaikin Money Flow (CMF) and Money Flow Index (MFI) recorded slight increases, suggesting that there is a possibility of a northward price movement.
To read Bitcoins [BTC] Price prediction 2024-25
If an upward move occurs, it will be important for BTC to break above $71,000 before hitting its new high. Nevertheless, the Relative Strength Index (RSI) remained in favor of sellers as it has declined over the past few days.
Source: TradingView
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