According to data from IntoTheBlock, 73% of BTC holders were profitable as of July 6. However, the BTC net trade flow and indicators were not in line with the positive market sentiment around BTC.
Bitcoin [BTC] investors felt a sense of accomplishment after Larry Fink, CEO of BlackRock declared that BTC was an international asset. Furthermore, he also claimed that he saw BTC play a role in the digitization of gold. However, there was more to celebrate than just this.
According to a tweet posted by IntoTheBlock, all eyes in the market were on BTC as of July 6. Furthermore, the infographic also showed that 73.57% of BTC holders were in a profitable position with 47.90% of weekly transactions. What was also noteworthy was that 29% of the total BTC supply had not moved in the last five years.
The tweet in question read like this: “All eyes are on Bitcoin as many altcoins continue to struggle! Check out our latest infographic showcasing key on-chain metrics. What do you think is next for BTC?”
Greetings to The Coin King
To add to the aforementioned sentiment, a tweet from analyst Willy Woo also highlighted an important point about BTC adoption. According to Woo, adoption stood at 4% of the world’s population and was much higher. Woo thus explains the reason why BTC would surpass any other asset adoption in the next two to three decades:
“Why Bitcoin will outperform in the next decades? Adoption S-curve on money, which is half of everything. Currently 4% of world population, it’s going much higher.”
Despite so much joy and confidence surrounding the king coin, BTC’s long/short ratio remained in a rather disappointing position. Recently, the long/short ratio of BTC was 0.9681. 49.19% of holders were long, while 50.81% of short holders.
BTC’s rise to $31,000 may have led to a change in investor mindset that may have encouraged some traders to take profit and exit the market. However, the small difference between the percentage of long and short headlines indicated that only some investors changed their minds.
Are the Bears Trying to Sneak in?
Although the sentiment around BTC may be sublime, its price action could scare away those hoping for bulls to go all out. At the time of writing, BTC was exchanging hands at $30,371, which was 0.64% lower than its opening price for the day. The indicators also painted a bleak picture.
BTC’s moving average convergence divergence (MACD) moved above the zero line. However, the MACD line (blue) and the signal line (red) crossed each other. This was an indication of a change in movement, as this could put the bears in a position of control.
Furthermore, the Relative Strength Index (RSI) was also in a downward position and stood at 59.72. Its move towards the neutral line indicated some selling pressure in the market. Furthermore, the BTC Money Flow Index (MFI) also came in at 50.79 strengthening the aforementioned notion, strengthening the narrative that some holders might be making a profit was the net flow of BTC exchange.
Recently, BTC net exchange flow stood at 1,567, which was not a great sign for BTC. When the inflow exceeds the outflow, it means that more traders were depositing their BTC into exchanges than taking it out of exchanges.
Since the inflow exceeded the outflow as of July 6, it could mean that the ongoing BTC price correction could continue. This would be until BTC sees a resurgence in buying pressure, or its net flow of exchange sees more flow out than flow in.
By Audy Castaneda
