- On July 3, BTC managed to cross the $31,000 mark amid its latest bullish strides.
- However, BTC’s long/short ratio swung in favor of short traders.
Cryptocurrency traders and investors entered the third quarter of 2023 with renewed fervor thanks to the optimistic state of the market. Bitcoin [BTC]in particular, can be considered responsible for this latest market cheer, as BTC managed to hit $31,196 on July 3.
When BTC crossed the $31,000 mark, crypto advisor Will Clemete took to Twitter to share his thoughts on the matter. The tweet highlighted BTC’s long-term market value to realized value (MVRV) chart.
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Clemete pointed out the similarities between the end of bear markets in 2012, 2016, 2019 and 2023. The tweet also stated that BTC’s bullish move was just beginning.
Forward and up…
In addition to Will Clemente’s tweet, a CryptoQuant analyst, yblockchain_, also promoted BTC’s bullish stance. According to yblockchain_ en his analysis, BTC’s NUPL value reached the ‘Optimism’ zone from July 3. Moreover, the NUPL value has also increased recently.
An increase in BTC’s NUPL value indicates that traders are profitable, that the market is overripe, and that investors have some faith in the cryptocurrency. This could be taken as a bullish sign for BTC, especially around the price action in the coming days.
Source: CryptoQuant
Is there a reversal in the charts?
When considering the price action of BTC on the daily time frame, it could be seen that BTC started the day at $30,633. However, with an increase of 2.45%, the press price came in at $31,381. What looked a little concerning was BTC’s Relative Strength Index (RSI) as it entered oversold territory, standing at 70.93 at the time of writing.
The movement of the RSI into the oversold area may cause BTC to witness some price correction in the coming hours. In addition, a look at the Moving Average Convergence Divergence (MACD) indicator also saw the MACD line (blue) in a bullish stance. However, the signal line (red) was seen to overtake the MACD line, increasing the likelihood of an impending price correction.
While BTC’s Awesome Oscillator (AO) flashed a green bar at press time, the presence of red bars above the zero line confirmed the presence of some bearish sentiment.
Source: TradingView
In addition to BTC price correction fears, data from coinglass showed that shortholders dominated the market at the time of writing. BTC’s long/short ratio was 0.9948 with 50.13% short holders and 49.87% long holders.
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While the difference between the two cohorts was minimal, the tipping of the scale in favor of shortholders was not a good sign. In addition, traders shorting BTC for profit could push BTC below the $30k level.
Source: mint glass
According to data from CoinMarketCap, BTC saw a 2.19% price increase in the past 24 hours. However, there has been some negative price action over the past hour with BTC falling 0.36%. BTC’s bull rally could be short-lived if traders continue to obsess over short-term gains over long-term returns.