Investor sentiment seems to be picking up steam in the midst of Bitcoin’s persistent waning price performance, which has been going on for a few weeks. BTC’s price fluctuations have raised speculations about a bearish market drawing close. However, investors are unfazed by these discussions as they continue to adopt the largest digital asset.
Bullish Investors’ Sentiment Toward Bitcoin
On-chain and technical expert Darkfost has outlined an upholding bullish sentiment among Bitcoin investors in a Quicktake research on CryptoQuant. In the quicktake post, the seasoned analyst reported that demand for BTC remains high, indicating rising buying pressure.
This persistent high demand coincides with BTC’s extended bearish price performance over the past few weeks. BTC’s short-term price action remains erratic due to market-wide corrections and macroeconomic uncertainty impacting its market dynamics.
Data shared by Darkfost shows that long-term holders and institutional investors are still accumulating BTC, reflecting their continued faith in its long-term prospects. While Bitcoin’s price fluctuates within a broad range between the $90,000 and $105,000 range, the expert stated that there is clear evidence of a continued accumulation by investors.
Darkfost spotted the development in market mood after thoroughly examining Bitcoin’s Exchange Inflow/Outflows Ratio 30DMA metric, a key measure for determining investors’ behavior toward BTC.
When this ratio drops to level 1, it implies that outflows are dominating inflows. Many professional investors consider this drop as a bullish signal. In other words, the stronger the underlying demand seems to be, the smaller the ratio.
In the past, when this ratio has moved into what is regarded as a high-demand area, the flagship asset usually experienced an upward move in the short term. Should this trend extend, it might trigger a price recovery, allowing Bitcoin to reclaim key resistance levels such as the pivotal $100,000 mark.
However, it’s crucial to remember that some of these outflows can be related to regular asset transfers to custodial wallets like ETFs, Institutionals, and OTC Desk made by centralized crypto exchanges. As demand holds strong, crypto enthusiasts are watching its impact on prices as they anticipate a rebound in the near future.
Short-Term BTC Holders Are Growing
Despite bearish price performances, BTC short-term holders are also making their presence known in the market as they continue to increase. World-leading financial and on-chain platform Glassnode shared the development in a recent X post.
The short-term holders‘ growth is evidenced by a decline in Bitcoin’s RHODL Ratio, a metric that helps to identify cycle inflection points by comparing mid-cycle holders to new investors. Typically, a high ratio occurs lose to the market bottoms while a low ratio indicates excessive short-term speculation, corresponding with market tops.
Presently, the ratio is moving downwards toward levels often cited in late-stage bull runs. Even though it is not absolute, Glassnode highlighted that the development reflects increased short-term participation, which is frequently seen before market tops. If the decline deepens before rising again, it could mark a turning point in the market.
