Bitcoin (BTC) price reset amid increased net position changes
Bitcoin’s price may have officially reached a reset point following a significant increase in net position changes among long-term holders. This indicator has historically helped with price recoveries, but the question remains whether the pattern will repeat this time.
$20 billion in funding for Bitcoin holders
Recent data from Glassnode shows that net position changes among long-term Bitcoin holders have been on the rise since July 22. Today, this indicator reached its highest level since January 2020, with long-term holders purchasing 334,358 BTC – approximately $20 billion worth at current prices.
While history doesn’t always repeat itself, patterns tend to rhyme. If the surge in long-term holder supply has a similar impact on Bitcoin, a breakout could occur in the medium to long term, although not as significant as previous gains.
In the short term, Bitcoin may benefit from the Miners Position Index (MPI), which recently fell to its lowest level. This suggests that miners are holding back from selling, potentially avoiding another price decline.
The bull market is ready to take the buying trigger
Another positive sign for Bitcoin is the exchange stablecoin ratio, indicating the market’s purchasing power. With the ratio at its lowest level since February 2023, market participants have significant buying power to drive prices higher.
CryptoQuant analyst Axel Adler believes that Bitcoin’s bottoming period is nearly over, with investors taking profits and no signs of panic selling. Realized losses now exceed gains, a common indicator of the end of a bottoming phase.
Bitcoin price prediction: $63,000 could be the next target
Technically, Bitcoin is currently trading below its 200-day EMA, suggesting a possible bearish trend. However, a price increase could push Bitcoin above this indicator, potentially leading to an uptrend towards $60,536.
If the MACD turns positive and the 12 EMA crosses the 26 EMA, Bitcoin’s price may move higher. Previous instances of this crossover have resulted in significant price increases, with a potential target of $63,237 if the bullish trend continues.
However, a bearish crossover could reverse the outlook, potentially causing Bitcoin’s price to drop to $54,491.
