Anchin’s analysis: A change in sentiment among Bitcoin investors could be a sign of the beginning of an uptrend

Bitcoin has been able to maintain its price above the $27,000 range in the last three weeks. Now, an examination of investor behavior patterns suggests that we may be on the verge of a reversal of the cycle and the beginning of an uptrend.

According to CryptoPotito, Chinese analysis platform Glassnode says that after the collapse of the FTX exchange, a sudden change in the investment trend has begun and Bitcoin has shifted from long-term investors to a new group of buyers.

This change in investment patterns has also existed in previous cycles, which can be a turning point in changing the market trend.

The price of Bitcoin has recently been able to deal with potential losses from the US Commodity Futures Trading Commission’s complaint against Binance and the spread of fake news related to the issuance of an Interpol red notice against Changpeng Zhao. However, the markets seem to be stabilizing at present.

Changes in the Bitcoin cycle

On April 3, Glassnode introduced the “RHODL ratio” index, which compares the assets of long-term investors in one cycle (6 months to 2 years) with the youngest short-term investors (one day to 3 months).

The purpose of this indicator is to measure the turnover ratio of Bitcoin between long-term investors and points of sale (distribution).

The current downward trend of this indicator shows that Bitcoin is moving from long-term investors to short-term investors; A pattern whose downward trend accelerated after the fall of the FTX exchange.

Glassnode also examines the MVRV index, or the ratio of market price to realized price. This index is used to measure the total unrealized interest of coins in circulation.

According to this company, this index is currently at 1.4, which means approaching the stage of market improvement. The Accumulation Trend Score also shows that the market is moving to the recovery stage.

Illiquid Supply Net Position Change (Illiquid Supply Net Position Change) index is also used to measure capital inflows and outflows to wallets with no history or a small amount of spending. The value of this index also increased by 36,600 bitcoins per month, which indicates the increase in confidence in this asset.

Glassnod noted:

This review is consistent with our previous analysis of investor behavior and shows the continued growth of trust in market sentiment despite pressure from regulatory bodies.

Bitcoin price outlook

The price of Bitcoin has increased by 0.33% in the last 24 hours and has reached around $28,500 at the time of writing this report.

Of course, Bitcoin’s fear and greed index being in the greed limit indicates that a possible price correction is ahead.

Currently, Bitcoin is up about 28% in value over the past 30 days, however, the price of this digital currency is about 58% lower than its all-time high of $69,000 in November 2021 (Aban 1400).