Have doubts about bitcoins [BTC] short-term gains? consider it

• Investors are growing increasingly impatient with Bitcoin’s near-term prospects.
• However, whales can have good news.

More than two months have passed since Bitcoin [BTC] last YTD spike. It has lost its bullish momentum, causing investors to grow weary of its near-term prospects. BTC is now at risk of investors losing confidence, which could lead to increasing selling pressure.

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Sometimes a change of perspective is enough to get a better overview of the market. This isn’t the first time bitcoin has been undecided at its price level as of press time.

Zooming out on a three-day chart showed that the recent resistance level near $28,000 in May 2022 acted as support. The price was previously in a downward movement before moving sideways, which was then followed by a continued descent.

Source: TradingView

Will the opposite happen this time? The price has been on a bullish trajectory since early 2023 and expect a longer uptrend if it continues to recover. So far, it has maintained healthy relative strength and its MFI indicates liquidity is still flowing into Bitcoin.

Additionally, a popular crypto analyst recently highlighted observations that suggest bulls may continue to dominate.

How much are 1,10,100 bitcoins worth today?

Bulls might be ready for more dominance

Crypto analyst @‌CredibleCrypto believes that Bitcoin’s bullish expansion phase has already begun. He also noted that the last consolidation phase was 30% longer than the previous phase between 2019 and 2020. Based on the above observations, the analyst expects the next bull run to be particularly strong.

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The expansion has started. This time after a period of consolidation that was ~30% longer than our last major rallies in 2019 and 2020. If you thought these rallies were strong, wait until you see this next one… $BTC pic.twitter.com/ MHP2jSbrXl

— CrediBULL Crypto (@CredibleCrypto) April 9, 2023

But do these expectations reflect things in the chain? Well, Glassnode data shows that the amount of BTC supply that has been active for more than 10 years is now at a new ATH of just over 2.7 million BTC. In addition, whales appear to be buying. The number of addresses with one or more BTC is now at a new ATH.

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📈 #Bitcoin $BTC The number of addresses with 1+ coins just reached an ATH of 993,856

View metric: https://t.co/s7tx1xxyz3 pic.twitter.com/g0ka6ksGOY

— Glassnode Alerts (@glassnodealerts) April 9, 2023

A quick look at the supply distribution shows that addresses with over 10,000 BTC have increased overall over the past 30 days. However, addresses holding between 100 and 1000 bitcoins have had their balances reduced over the same period.

Source: Santiment

The above observations don’t necessarily relieve bitcoin of selling pressure. The market was still nervous at press time, perhaps awaiting the next important signal that could offer some directional clarity. Bitcoin exchange flows have been declining over the past few days. This includes both foreign exchange inflows and outflows.

Source: CryptoQuant

On the plus side, demand for derivatives remains at healthy levels. Such small market movements inevitably entail some leverage in demand for derivatives as traders seek to maximize profits in low volume market conditions. Bitcoin’s estimated leverage ratio has increased slightly since early April.

Source: CryptoQuant

Bitcoin open interest has increased significantly over the past few days. In particular, it has been rising since the end of March. A sustained uptrend could trigger a return in market confidence.

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