• Short-term holders have been selling their Bitcoin holdings in recent days, but the bullish sentiment remains strong.
• CryptoQuant’s Exchange Reserve metric indicates that traders are cashing in on the surge to make profits.
• According to Santiment, BTC’s weighted sentiment is still positive, indicating a bullish outlook for the king coin.
Short-Term Traders Selling Bitcoin
Short-term holders have increasingly sold their BTC holdings in the last few days. However, bullish sentiment remains in the market. According to pseudonymous CryptoQuant analyst Cryptohell, Bitcoin’s [BTC] Exchange Reserve metric has spiked due to the king coin trading at a nine-month high, indicating that traders have been cashing in on the recent surge in price to make profits.
Assessing Short-Term Output Profit Ratio (STH-SOPR)
Cryptohell assessed BTC’s Short-Term Output Profit Ratio (STH-SOPR) metric to determine what short-term traders have been up to. At 1.05, Cryptohell stated that this metric indicated that short-term holders had control of the market and were involved in significant coin distribution volume. Further, Cryptohell explained that this investor cohort has taken to selling their holdings due to various factors impacting the current market situation such as FOMC meeting on 22 March , majority of Muslim traders withdrawing investments as Ramadan approaches and traders being content with their profits and planning to leave once it reaches $30K mark .
Bullish Sentiment Lingers Onchain
While BTC short-term traders might be involved in coin distribution in anticipation of a price decline, an assessment of BTC’s on-chain performance confirmed that sentiment remained significantly bullish. Per data from Santiment, BTC’s weighted sentiment was 2.407, at press time. A positive value of an asset’s weighted sentiment confirms that the market is convinced that the asset’s price will grow further.
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Conclusion
In conclusion although shorterm investors may be taking some profit off the table due to various factors impacting current market situation , overall there is still significant bullisment among long term hodlers based on analysis from both CryptoQuant and Santiment metrics .