BTC registered it largest profit-take ratio day for the first time since March 28, 2022.
The price is up 5% since the beginning of the year
An assessment of the total number of coins in all Bitcoins [BTC] trades on the network moving in profit or loss revealed that the king coin had achieved its biggest profit-withdrawal ratio day for the first time since March 28, 2022, data from Santiment revealed.
🤑 #Bitcointhe price increased by +4.7% in 2023. The small profit opportunities for $BTC have been seized by traders, and yesterday was the second largest win-loss ratio of the past year. The peak in the highest profit take-up resulted in a -18% the following month. https://t.co/nTkX0TUPWs pic.twitter.com/VGA5CxF0NZ
— Santiment (@santimentfeed) January 10, 2023
Read Bitcoin [BTC] Price forecast 2023-2024
What do BTC stats reveal?
According to the on-chain analytics platform, the recent spike in the profit withdrawal rate was due to the 5% growth in the price of the leading coin since the start of 2023. At the time of writing, BTC was trading at USD 17,446.89. On January 1, one BTC changed hands for $16,548, data from CoinMarketCap revealed.
In addition, per data from CoinGlass, there was a strong increase in BTC Open Interest since the beginning of the year. This suggested that numerous contracts have been opened in an attempt to profit from BTC’s price increase.
An increase in open interest indicated that more traders were entering the market and opening new positions at the time of writing. This could be an indication of investors’ growing confidence in the market.
It is also evidence of increased liquidity and volatility in the market. This was because more traders and more open positions typically lead to more buying and selling activity.
At $9.79 billion at press time, BTC’s Open Interest has grown 7% since the start of the year.
Many are looking for the king coin
An analysis of BTC’s on-chain activity showed that the number of sales for the coin has declined since the start of the year. So this indicates a potentially positive trend for the value of the digital asset.
How many BTCs can you get for $1?
According to Santiment, after a temporary rally on exchanges between January 1 and January 4, BTC supply has since fallen 1%. The increase in the supply of BTC on exchanges in the first few days of the new trading year was due to the negative sentiment that many investors harbored at the end of 2022. This caused them to sell their positions.
It is trivial that when the supply of a crypto asset decreases on exchanges, it generally indicates that more coins are in the hands of traders and investors rather than being sold on the open market.
BTC funding rates have been positive since the start of the year, data from CryptoQuant showed. A positive funding rate indicates that traders who have taken long positions, believing that the price of the crypto asset will rise, are in the majority.
This is because in this case short position traders are required to pay these long position traders which marks their dominance in the market.
This post Bitcoin: why betting against a BTC price rally may not be the way to go
was published first on https://ambcrypto.com/bitcoin-why-betting-against-a-btc-price-rally-might-not-be-the-way-ahead/