BTC Short-Term Price Development-The Bullish and The Bearish Cases
Since the beginning of the year, Bitcoin price has rallied 50%, leading many to believe that the bull market is back. While I am bullish in the long run, I am cautious when it comes to the next couple of months. In this article, I will look at a few short-term bullish and bearish factors and how they could affect Bitcoin price.
Let’s start with stablecoin supply.
Shout out: I got the following chart from looknode.com which has made many on-chain indicators free.
Over the last 12 months, circulating supplies of major stablecoins USDT, USDC, BUSD, and DAI have been decreasing. As a result, the total circulating supply of stablecoins went down. This indicates that some capital has left the crypto space, as stablecoins are a gateway to get capital in and out of crypto. Nonetheless, the drop was relatively moderate when compared with the steep increase of new stablecoins entering circulation throughout 2021.
Bullish BTC Indicators & Factors
With this, let’s take a look at some bullish indicators for BTC.
People who are hodling Bitcoin for more than 2 years have reached an all-time-high rate of 51%.
In other words, more than half of all Bitcoin holders have now held their coins for more than 2 years. This indicates that an increasing number of people see a long-term value in BTC.
Short-Term Holder SOPR
At the moment, we see a strong short-term holder SOPR. The green spikes indicate that short-term holders have begun to make steady profits. This change is the basis for the market to enter a sustained upward trend.