- Bitcoin’s on-chain indicators are displaying extreme tradings amid record low volatility.
- Short-term holders of BTC are showing signs of high conviction leading to low liquidations.
- On-chain data suggests that Bitcoin investors are being cautious following last year’s turmoil.
Since the beginning of the year, crypto investors have poured over $16 billion into Bitcoin. Despite being a considerable amount, the 4.1% hike in capital inflow was significantly less than that seen during the 2021-22 cycle. The reduced capital inflow in Bitcoin suggested that BTC investors have turned cautious over the past year.
According to on-chain data gathered by blockchain analytics firm Glassnode, BTC’s on-chain indicators displayed extreme readings amid record-low volatility in the crypto market. Bitcoin supply held by short-term holders declined to a multi-year low of 2.56 million BTC, while several other key on-chain indicators like BTC price volatility reached all-time lows.
Another metric that reached all-time lows was the sell-side risk ratio for short-term holders of BTC. However, Bitcoin supply held by long-term holders continued to increase, reaching an all-time high of 14.6 million BTC. The on-chain data indicated that Bitcoin investors had high convictions regarding the flagship cryptocurrency, leading to reduced BTC liquidations.
At the time of writing, BTC was trading at $29,532, up 0.7% over the past 24 hours. Its market capitalization came in at over $575 billion.
Interestingly, Bitcoin’s trading volume increased by a whopping 97% over the past 24 hours, coming in at more than $12 billion. As for Bitcoin’s technical indicators, the On Balance Volume (OBV) is currently hovering around 1.7 million. A positive OBV is usually indicative of positive price action in the short term. Meanwhile, BTC’s daily chart showed the Relative Strength Index (RSI) at 52.1, which is somewhat of a midline.
Data from Coinglass showed that more than $17.2 million worth of BTC was liquidated over the past 24 hours, of which the majority was through long positions. The total open interest on BTC perpetual contracts has increased by 0.5% on centralized exchanges.
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