- According to data from IntoTheBlock, 73% of BTC holders were profitable as of July 6.
- However, BTC’s net flow and indicators did not match the positive market sentiment surrounding BTC.
Bitcoin [BTC] investors felt a sense of satisfaction afterwards Larry Fink, CEO of BlackRock stated that BTC was an international asset. In addition, he also stated that he saw BTC playing a role in digitizing gold. However, there was more to celebrate than just this.
As of July 6, all eyes in the market were on BTC, according to a tweet from IntoTheBlock. Moreover, infographics also showed that 73.57% of BTC holders were in a profitable position with 47.90% of weekly trades. Also notable was that 29% of the total BTC supply had not moved in the past five years.
🔍 All eyes are focused #Bitcoin so many altcoins continue to struggle! Check out our latest infographic with key on-chain metrics. What do you think is next $BTC?
Dive into the data: https://t.co/iWfpDNCgQ9 pic.twitter.com/LgC9ohKVs2— IntoTheBlock (@intotheblock) July 6, 2023
Read Bitcoin [BTC] Price forecast 2023-2024
All hail for the king
To add to the aforementioned sentiment, a tweet from analyst Willy Woo also highlighted an important point about BTC adoption. According to Woo, adoption was at 4% of the world’s population and going much higher. According to him, this is why BTC would outperform any other asset adoption over the next two to three decades.
Why #Bitcoin will perform better in the coming decades?
Adopting S-curve on money, that’s half of everything.
Currently 4% of the world’s population, it goes much higher. https://t.co/c8nWPwdqOU pic.twitter.com/xTY74YS7cl
— Willy Woo (@woonomic) July 6, 2023
Despite so much cheer and confidence surrounding the king coin, BTC’s long/short ratio was in a rather disappointing position. At the time of writing, BTC’s long/short ratio stood at 0.9681. 49.19% of holders took long positions, while short position holders amounted to 50.81%.
Source: mint glass
BTC’s rise to $31,000 may have led to a shift in investor mindset that may have encouraged some traders to take profits and exit the market. However, the small difference between the percentage of long and short holders indicated that only a few investors had changed their minds.
Are the bears trying to sneak in?
While the sentiment surrounding BTC may be sublime, the price action may startle those who expect the bulls to pull out all the stops. At the time of writing, BTC was exchanging hands at $30,371, which was 0.64% lower than the day’s opening price. Indicators also painted a gloomy picture.
BTC’s Moving Average Convergence Divergence (MACD) moved above the zero line. However, the MACD line (blue) and the signal line (red) crossed each other. This was indicative of a change of movement, as it could put the bears in a position of control.
In addition, the Relative Strength Index (RSI) was also in a falling position and came in at 59.72. The move towards the neutral line indicated some selling pressure in the market. Moreover, BTC’s Money Flow Index (MFI) also stood at 50.79, reinforcing the aforementioned idea.
Source: TradingView
Reinforcing the narrative that some holders could take profits was BTC’s exchange net flow. At the time of writing, the exchange net flow of BTC was 1,567. This was not a good sign for BTC. To elaborate, when inflows outweigh outflows, it means that more traders were depositing their BTC on exchanges than withdrawing them from exchanges.
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Since inflows outweigh outflows from July 6, this could mean that the ongoing BTC price correction could continue. This would be until BTC sees a resurgence in buying pressure or its exchange grid flow sees higher outflows than inflows.
Source: Glassnode