The curious case of bitcoin hit a new high today and investors are now feeling excited about its future. The king coin has seen a roller-coaster in recent months, with the crypto market collapsing with the Terra crash. After a short period of underperformance, bitcoin again broke above the long-term $30,000 support line.
Recently, crypto analysts expressed their bearish sentiments for bitcoin in the near future. But the latest data suggests that there is more to come for bitcoin as it enters another crucial period of holding positions above $30,000.
What does the data say?
according to a recent Sentiment Tweet, Bitcoin supply on exchanges has hit a new low today. It is showing signs of “HODLer confidence” after a panic sell-off in May. This flurry of taking bitcoin to exchanges was prevalent during and after the crash. The supply of bitcoin on exchanges has finally hit a 3.5-year low after falling below 10% for the first time since December 2018.
Right now other indicators are also indicating investor confidence for bitcoin. One of the key reasons is the ability of BTC to maintain positions above $30,000 for a sustained period. The number of exchange deposits suggests a community’s self-confidence in its assets. The metric fell today to a 19-month low of 2,195.95, from a previous low of 2,199.23 yesterday.
Exchange inflow volume is another metric that suggests a strong bitcoin community after falling to a 1-month low of $32.3 million. The previous low was seen yesterday at $32.6 million. It also means that there is a growing certainty among investors that bitcoin will rise further after the May turmoil.
“Looking For The Bottom”
Prominent crypto analyst Willy Woo gives his 2C on the matter analysis on Twitter.
“BTC is attempting a bottom structure which is yet to be confirmed. Locally we are seeing strong spot demand by holders, potentially institutional. None of this would matter if the macro markets bullied themselves. are,” he said
He further added that in the last bitcoin bottom, 60% of the supply was at a loss, but this time it is only 47%. To which he said that “there is still room for more pain.”
So it looks like the roller-coaster is all set to continue.