Daily Bitcoin On-Chain Snap #16

Expect volatility above $60,000 as Long-Term Holders and Miners become net sellers

All-time highs bring increased demand volume as strong hands sell to new investors, often as price breaks the previous high, and realise gains into market strength. Additionally, market sentiment continues to strengthen amid the accelerated growth in the Bitcoin network. This bodes well for BTC as the asset continues to attract capital from corporate treasuries and institutional investors ahead of the anticipated ETF approval on 18 October, with option markets signaling bearish positioning with a 1.59 put to call ratio and a max pain price of $50,000 for options expiring on 22 October.

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Bullish Convergence on Long-term Holder Supply Chart indicates BTC is ready for new all-time highs

From a macro standpoint, Long-Term Holders finish spending BTC and resume net accumulation again. This includes coins accumulated during the final stages of the bull market and can be considered a reliable confirmation of a broader macro shift. More importantly, market tops are followed soon after by a reversal in the downtrend of Long-Term Holder Supply. However, this chart signals a bullish divergence that aligns well with bitcoin’s momentum heading into the SEC ETF decision on 18 October, with the potential of up to four bitcoin ETFs by month-end.

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