- BTC crossed the $27,900 mark, leading to anticipation of big gains.
- Short-term holders can make a profit again.
Bitcoin [BTC] can expect a bullish turn in the short term if the predictions of the well-known sleuth Ali Martinez on the chain can be trusted.
Read Bitcoin’s [BTC] Price forecast 2023-24
Is Bitcoin Ready for a Bull Market?
The king coin rose to almost $30,000 earlier this week after an unverified claim from a popular news platform went viral. Although it retreated from the highs, Bitcoin consolidated at the $28,000 zone and has not dropped below it, according to data from CoinMarketCap.
Of particular note, however, were the levels that Bitcoin broke in the dramatic episode. In an October 18 X-post, Martinez highlighted that the world’s largest cryptocurrency has broken the “crucial psychological benchmark” of $27,900.
He further stated that if BTC manages to stay above this level, bullish market forces would be encouraged.
Source: @ali_charts/Glassnode
Meaning of the level
The critical price point highlighted was the short-term holder cost basis or the Short-term Holder Realized Price (STH RP). The STH RP calculates the average price at which Bitcoin was purchased by investors who held their holdings for less than 155 days.
Historically, it has served as a reliable support level during strong uptrends. This is because previous breaches at this level have injected significant bullish force into Bitcoin.
The STH RP has therefore been a barometer of market sentiment. The possibility of previously underwater short-term holders tasting profits implied a decisive shift into a bull market.
At the time of writing, only about 12% of Bitcoin’s total circulating supply was in the hands of short-term holders. However, because these players are the first to respond to market volatility, their behavior has a greater impact on Bitcoin’s price movements. Long-term holders (LTH), on the other hand, remain unmoved during periodic rallies and crashes.
Source: Glassnode
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Market sentiment was balanced, according to the latest update of the Fear and Greed Index. With bears and bulls locked in a close battle, the key price points discussed above could be key to speculating on Bitcoin’s next steps.
Bitcoin Fear and Greed Index is 52. Neutral
Current price: $28,492 pic.twitter.com/EJdXHexJYg— Bitcoin Fear and Greed Index (@BitcoinFear) October 19, 2023