- Bitcoin’s price crossed $67K, hinting at a further bull rally
- Several metrics also seemed bullish for the cryptocurrency
While Bitcoin’s [BTC] price remained in a consolidation phase, short-term holders sold a substantial amount of BTC on exchanges at a loss. The sudden sell-off might actually turn out to be good news for BTC though, as it can help initiate a bull rally in the coming days.
Short-term holders are selling Bitcoin
Alex, a popular crypto-analyst, recently shared an interesting development regarding short-term holders. As per the tweet, from 19 March to 4 April, STHs sold 106.8K BTCs at a loss on exchanges.
Here, it is interesting to note that STHs also sold BTC at a loss in January. When that happened, BTC’s price gained bullish momentum, which eventually resulted in Bitcoin touching a new all-time high. Therefore, this is a hopeful sign for a price uptick in the coming days.
However, it must also be noted that the amount of BTCs sold by STHs in January accounted for almost three times more than what they sold in between March and April.
Additionally, AMBCrypto’s look at CryptoQuant’s data revealed that Bitcoin’s short-term holder SOPR registered an uptick after declining on 2 April. Historical data suggests that whenever these metrics move up, BTC’s price also follows a similar trend of increment.
Source: CryptoQuant
In fact, at the time of writing, BTC’s price action was already showing signs of recovery as it crossed $67k – A psychological resistance level. Over the last 24 hours alone, it was up by almost 2% on the charts.
Is there a bull rally around the corner?
AMBCrypto’s analysis of CryptoQuant’s data revealed that BTC’s exchange reserve has been dropping too, meaning that overall selling pressure is low. The coin’s binary CDD was green, meaning that long-term holders’ movements in the last 7 days were lower than average.
Everything on the derivatives side looked optimistic as well. BTC’s funding rate was hiking. However, Bitcoin’s taker buy/sell ratio raised a red flag as it suggested that selling sentiment was dominant in the derivatives market.
Source: CryptoQuant
To better understand whether a rally is possible, AMBCrypto analyzed BTC’s daily chart. Our analysis pointed out that both BTC’s Chaikin Money Flow (CMF) and Money Flow Index (MFI) registered slight upticks, indicating that there were chances of northbound price movement.
Read Bitcoin’s [BTC] Price Prediction 2024-25
If a bull rally happens, it is important for BTC to cross $71k before it targets its ATH. Nonetheless, the Relative Strength Index (RSI) remained in the sellers’ favor as it went down over the last few days.
Source: TradingView
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