Having Doubts About Bitcoins [BTC] short term gains? consider this

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Investors are increasingly impatient with Bitcoin’s near-term prospects. However, whales may have good news.

It’s been more than two months since Bitcoins [BTC] last YTD peak. It lost bullish momentum, causing investors to grow weary of its near-term outlook. BTC now runs the risk of investors losing confidence, which could lead to increased selling pressure.

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Sometimes a change of perspective is enough to get a better view of the market. This is not the first time that Bitcoin has experienced indecision at its price level at press time.

Zooming out on a 3-day chart revealed that the recent resistance level near $28,000 acted as support in May 2022. Price was previously in a downward trajectory before sideways activity, which was then followed by a continuous descent.

Source: Trading View

Will the opposite happen this time? The price has been on a bullish trajectory since the start of 2023, and a prolonged upside can be expected if it continues to rally. So far, it has maintained healthy relative strength and its IMF indicates that liquidity continues to flow into Bitcoin.

On top of that, a popular crypto analyst recently highlighted observations that suggest bulls may continue to dominate.

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The Bulls could be ready for more dominance

Crypto analyst @CredibleCrypto believes that Bitcoin’s bullish expansion phase has already begun. He also noted that his last phase of consolidation was 30% longer than the previous phase between 2019 and 2020. The analyst expects the next bull run to be particularly strong, based on the observations above.

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The expansion has begun. This time after a period of consolidation that has been around 30% longer than our last major rallies in 2019 and 2020. If you thought those rallies were strong, wait until you see this one $BTC pic.twitter.com/ MHP2jSbrXl

CrediBULL Crypto (@CredibleCrypto) April 9, 2023

But do these expectations reflect things on the channel? Well, data from Glassnodes shows that the amount of BTC supply active for over 10 years is now at a new ATH of just over 2.7 million BTC. On top of that, the whales seem to be buying. The number of addresses holding one or more BTC is now at a new ATH.

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#Bitcoin $BTC The number of addresses with more than 1 coins just hit an ATH of 993,856

View metric: https://t.co/s7tx1xxyz3 pic.twitter.com/g0ka6ksGOY

glassnode alerts (@glassnodealerts) April 9, 2023

A quick look at the supply distribution reveals that addresses holding more than 10,000 BTC have increased their holdings overall over the past 30 days. However, addresses holding between 100 and 1000 Bitcoins have reduced their balances over the same period.

Source: Santiment

The above observations do not necessarily absolve Bitcoin from selling pressure. The market was still nervous at press time, perhaps waiting for the next major signal that might offer some directional clarity. Bitcoin exchange flows have been declining in recent days. This includes both currency inflows and outflows.

Source: CryptoQuant

On the positive side, demand for derivatives remains at healthy levels. These small market moves are sure to attract some leverage activity in derivatives demand as traders seek to maximize gains in low volume market conditions. Bitcoin’s estimated leverage ratio has increased slightly since early April.

Source: CryptoQuant

Open interest in bitcoins has increased significantly in recent days. Most notably, it has been on the rise since the end of March. A continued rise could trigger a return of market confidence.

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