Additionally, the MVRV ratio of Bitcoin, which measures the average profit or loss of all holders, declined. This suggested that Bitcoin holders were becoming less profitable. If this trend continues, it could potentially lead to a decrease in selling pressure from holders.
While these developments bode well for Bitcoin, some cautionary signs have also emerged. The long/short difference of BTC has been decreasing, indicating that the number of new addresses were outnumbering the old addresses. It is worth noting that new addresses are more likely to sell their holdings, potentially causing price fluctuations and challenges for Bitcoin’s stability in the future.Despite these potential concerns, the overall number of long positions for BTC has witnessed a significant increase in recent days, according to
. This increase indicates a growing bullish sentiment among investors, possibly driven by positive market indicators and the prospect of future price appreciation.One reason for the spike in long positions favoring Bitcoin could be the declining Implied Volatility for the cryptocurrency. Decreasing volatility often encourages investors to take more favorable positions, expecting a period of price stability or upward movement.At press time, Bitcoin was trading at $27,214.77, a 1.