Looking at the price movement of the king coin, it may not look like Bitcoin is still bullish. Unfortunately, it really is. However, with the market in an uncertain state right now, it is best to analyze all aspects of the market. Specifically, the movements of investors to determine whether or not Bitcoin will soon hit a new all-time high.

Bitcoin bulls continue to rage

At the macro level, the Bitcoin market is still in a bullish state. Perhaps this is why the market sustained gains even after a fortnightly decline in prices.

As profit realization increases, so does the likelihood of forming a macrotope. Given that the last macro high was our most recent all-time high (ATH), it only makes sense that the next high would be the next ATH.

Bitcoin Realized Gains and Realized Price | Source: Glassnode

This is where the ifs and buts come into play. As soon as Bitcoin’s chart was the first red candle after its ATH, Short-Term Holders (STHs) took the opportunity and made profits by selling their holdings. An increase in STH spending (SOPR) only occurs with heavy profit taking.

Bitcoin STH SOPR | Source: Glassnode

However, instead of falling back to 1.0, the STH SOPR indicator has continued to fall, hovering below 1.0. Usually this is an indication of a trend reversal during a bull market and when the SOPR returns to 1 and above we have high hopes for the ATH.

However, if it lingers in this zone for a long time, the fear of a bear market could become a reality.

Additionally, there is concern about Bitcoin’s presence in the bull / bear transition zone when only 85% -90% of the supply is profitable.

Bitcoin supply in profit | Source: Glassnode

As mentioned before, there is still a possibility that Bitcoin will fall to $ 50,000 due to market behavior. But if it’s supposed to happen, it won’t happen for the next 72 hours. If it doesn’t, unless it falls into an absolute bear crash, the market may well rebound.

Since STHs are currently actively accumulating at the macro level and the momentum is only building up in the direction of HODLing, the price could also rise again. Ergo, we could see BTC hit a new ATH within a week or two.

Bitcoin STH supply | Source: Glassnode

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