As BTC continues to remain below $30,000, rising levels in several key indicators suggest a trend reversal in the coming days.
If short-term holders enter an accumulation phase, BTC prices could rise.
Derivatives market indicators remain bearish.
The price of Bitcoin has been moving sideways for several weeks now. Despite price swings across multiple altcoins, BTC’s value continues to remain below the $30,000 mark. However, some of the latest analysis suggests that the slow-moving price action may be coming to an end.
Is Bitcoin's sideways trend coming to an end?
The king of cryptocurrencies seems to have gotten used to prices below $30,000 for quite some time. According to data from CoinMarketCap, BTC’s price has fluctuated only slightly over the past seven days. At press time, it is trading at $29,364.40 with a market cap of over $571 billion.
However, as a recent analysis points out, this trend may soon come to an end. SignalQuant, a writer and analyst at CryptoQuant, highlighted the relationship between new capital inflows and the price of BTC. Unfortunately, the supply of all stablecoins has been decreasing over the past 18 months. Therefore, the analysis took into account USDT (ERC), which has risen in tandem with this year’s gains.
USDT (ERC) circulation increased in early December 2022, early March, and mid-June 2023, followed by an increase in BTC price. Therefore, USDT (ERC) circulation is an important indicator to watch. If this indicator rises in the coming days, the price of Bitcoin may rise.
Another analysis highlighted the behavior of short-term holders, which could have interesting implications for the market. CryptoQuant analyst and author Axel Adler Jr revealed that the supply of the short-term holder (STH) group increased by 100,000 BTC, reaching 4.2 million BTC from the previous 4.1 million BTC.
The STH cohort may enter an accumulation phase in the future. This could be a bullish sign given that STH currently accounts for the majority of market inflows.
Check out the state of BTC
While the above analysis suggests that BTC’s price action has the potential to turn bullish, an examination of other indicators suggests otherwise. For example, Bitcoin’s net deposit volume on exchanges is above its 7-day average, meaning it is facing selling pressure.
The cryptocurrency’s aSORP is in the red, indicating that more investors are taking profits and selling. Bitcoin’s price often deviates from its funding rate. At press time, BTC’s Binance funding rate is in the green, increasing the likelihood of a price drop.
However, its weighted sentiment has improved over the past few weeks.
