• Bitcoin price has appreciated from its lows of $15k and has now managed to break above $21k, a bullish threshold.
• Sellers are exhausted and over 80% of Bitcoin is now held by long term holders.
• Short sellers have been heavily punished and liquidated, pushing the price to the upside.
Crypto prices have been on a rollercoaster ride over the past year and a half. After reaching an all-time high of $69k in April 2021, Bitcoin tumbled to a low of $15k in November. The bear market has been punishing for many, as traders and speculators have been burned by the volatility and unpredictability of the market.
But it seems that the market is finally beginning to show some signs of bullish sentiment. For the first time in over a year, Bitcoin has managed to break the $20k threshold, and even reach above $21k. Ethereum has managed to reclaim $15k, and smaller cap alt coins such as Solana and Cardano have made far more significant gains.
The macroeconomic situation is also playing a role in the bullish sentiment. With inflation falling and the likelihood of a Fed pivot increasing, investors are beginning to see potential in digital assets. Additionally, sellers are exhausted and it appears that there are few left to drive the price down. According to on-chain analytics, over 80% of Bitcoin is now held by long term holders, who are far more resistant to the volatility.
The situation has been particularly tough for short sellers, who have been betting against the market. Many have been heavily punished as their bearish bets have been liquidated, pushing the price to the upside.
All in all, there appears to be a strong momentum in the market, and it looks like prices are in for a strong week ahead. Long term holders are likely to benefit the most, and with the right strategy and patience, retail investors can also capitalize on the situation. It remains to be seen whether the bullish sentiment will continue, but it appears that the worst of the bear market is behind us.