Why Bitcoin’s latest milestone may do little to support BTC bulls

Posted: September 29, 2023

• Bitcoin bulls flex as whole coiners and long-term holders rally.
• BTC’s price chart showed signs that the market might be kicking off its next short-term rally

If you are a Bitcoin [BTC] fan, chances are that you are wondering when the next bull run will commence. Unfortunately, accurately predicting the timeline is nearly impossible.

However, assessing the state of demand gives insights into short and long-term prospects.

Read Bitcoin’s [BTC] price prediction 2023-24

At least there is some good news for BTC holders especially those in it for the long-term. According to recent findings, the amount of BTC supply held by long-term HODLers was now at its highest level in history at 76.09%.

This confirmed that long-term investor confidence was growing significantly.

There it is — The percentage of Bitcoin supply held by long-term holders just officially reached its highest level ever at 76.09%. pic.twitter.com/D5SYBTmSm2

— Will Clemente (@WClementeIII) September 28, 2023

This may suggest that long-term holders see the current price range as an ideal entry point. One of the major reasons for this is the heavy weight of expectations placed upon Bitcoin ETFs.

With each passing day, the probability of a spot ETF approval goes higher, especially regarding recent pressure on the SEC. In addition to the growing long-term holders, the number of addresses holding at least 1 BTC also attained a new ATH.

📈 #Bitcoin $BTC Number of Addresses Holding 1+ Coins just reached an ATH of 1,022,989

Previous ATH of 1,022,961 was observed on 25 September 2023

View metric:https://t.co/s7tx1xxyz3 pic.twitter.com/18saLV4HF4

— glassnode alerts (@glassnodealerts) September 28, 2023

Is Bitcoin still bearish in the short term?

The above findings indicate that Bitcoin was seeing considerable demand at its current price level. However, this does not necessarily indicate that it will avoid more downside. Bitcoin’s recent attempts to rally back to the $30,000 price range have been thwarted by sell pressure. A sign that the market still stood in favor of short-term profit-taking.

Despite the recent FUD, the recent accumulation clearly had an impact on Bitcoin’s performance. It pulled off a 2.75% upside in the last 24 hours to its $27,112 press time price. This means, at press time, the cryptocurrency was up by over 4% from its current weekly low.

Source: TradingView

Will Bitcoin sustain its current upside? Well,  Bitcoin’s latest performance has been going against expectations. For example, lower highs previously yielded bearish expectations, especially after the death cross earlier this month.

Meanwhile, the current rally underscores a bounce from its Relative Strength Index (RSI)’s ascending short-term support. It also reinforced the observation that BTC was gaining relative strength.

How many are 1,10,100 BTCs worth today

Bitcoin’s exchange flows pivoted since Saturday (23 September) and has been on the rise since then. The latest Glassnode data revealed that exchange outflows outweighed exchange inflows. In short, BTC demand outweighed sell pressure.

Source: Glassnode

Bitcoin’s latest performance and price chart pattern suggested that it might kick off Q4 with some bullish momentum. However, the preference for short-term profit-taking may still be in effect at least until the next white swan event.