- The influx of BTC exchanges has gradually slowed since the initial rush of the rally.
- Long-term holders sold BTC at better margins compared to short-term holders.
Excitement in the crypto market has skyrocketed amid a flurry of requests for a spot Bitcoin [BTC] ETF. Interest shown by TradFi giants has revived hopes of a BTC bull run among market participants.
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In the midst of this fervor, a technical analyst CryptoCon examined a key indicator and came up with a positive forecast. The analyst highlighted the trajectory of the Bollinger bandwidth, an indicator commonly used to visualize periods of high and low volatility.
According to the indicator, BTC entered a low volatility zone, reaching levels historically shown to precede historic bull runs of 2017 and 2021. The analyst enthusiastically noted:
“When volatility gets low in a bull market, it’s insanely bullish.”
Source: CryptoCon
Are holders in profit?
Bitcoin price is up 13% since news of BlackRock’s application for spot ETF went public, according to CoinMarketCap. In doing so, it also reached $31,000, its highest level in more than a year.
Bitcoin’s Long Term Holder SOPR, a measure of the profit margins of seasoned investors of the king coin, revealed that most of these holders sold BTC at a profit. According to CryptoQuant, the SOPR reading was 1.29%, indicating that BTC could be in the early stages of a bull cycle.
Source: CryptoQuant
On the other hand, profit margins of short-term holders (STH) of BTC fell significantly. After rising to 3.4% on the day the rally started, margins have come down. This was in stark contrast to the bullish phase of March when STH averaged 7.6% gains.
Source: CryptoQuant
Exhaustion of the exchange stock
Despite the profit potential, BTC exchange inflows have gradually slowed since the initial rush of the rally. Spikes in this metric imply increased selling pressure. The accumulation phase therefore meant that holders braced for a bull run, in line with CryptoCon’s aforementioned forecast.
Source: CryptoQuant
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Whales are not interested yet
Major addresses also resisted the temptation and expressed confidence in Bitcoin’s long-term growth prospects. The exchange’s Whale Ratio, the relative size of the top 10 inflows to total inflows, showed that whale interaction has decreased significantly over the past week.
Source: CryptoQuant