Bitcoin’s movements have of course generated a lot of interest from investors. Recently, data from CryptoQuant suggested that Bitcoin still has a long way to go before entering its next bull run.
Historical data provides insight #bitcoins future: #CryptoQuant Report https://t.co/JGhjPFvE5D
— Kyptos (@azcoinnews) April 5, 2023
The report shows that asset values for short-term holders are more profitable near the bottom, and Bitcoin’s demand for sustained price increases depends on the behavior and profitability of these players. In other words, knowing what a bitcoin holder is holding against actual price is one of the best and most valuable ways to determine their behavior.
The report noted that long-term holders typically hold their tokens longer and suffer more losses. Bitcoin’s profit days typically start with short-term holders taking profits, and the more overwhelmed these holders are, the more interested they are in HODLing and the less selling pressure.
Source: CryptoQuant
According to the above data and description, when the fair value sees that the age range of 1-6 months exceeds the age range of 6-12 months, new investors make more profits. This suggests that short-term holders are currently more valuable.
However, the report states that things are different now and more new investors are needed to create more value for short-term holders, thereby changing their perception of long-term holders and making them long-term holders. For these reasons, it can take a long time for BTC prices to rise.
The report is based on the Bitcoin price cycles of 2015-2016 and 2018-2019, where the fair value of the 1-6 month age group has surpassed that of the 6-12 month age group. After the correction, the rally started. While things are different now, this historical data provides useful insights into where the market will go in the future.
All in all, the CryptoQuant report shows that Bitcoin still has a long way to go before officially kicking off its next bull run. Short-term holders play an important role in Bitcoin’s profitability, and more new investors are needed to stimulate long-term sentiment among these holders. While this process can be time-consuming, past bitcoin price cycles provide some insight into the future direction of the market. As always, investors should exercise caution and consider carefully before making any investment decisions.
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Mr. teacher
according to Kyptos
