- Short-term Bitcoin holders showed a profit-taking pattern as prices hit $30-$31,000.
- Overall, traders remain optimistic, but declining miner income could negatively impact BTC.
Bitcoin[BTC]the price of $31,000 has not crossed in a positive way in recent months. Recent data indicated that the actions of short-term holders played a critical role in determining the price of BTC as it hovered around $30,000.
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Here for a good time, not for a long time?
According to Glassnode data, when Bitcoin hit the 30,000 mark in June, there was substantial profit-taking activity undertaken by short-term holders, which continued into July, marked by major events such as the collapse of FTX and SVB. At the time of writing, profit taking was down to a minimum.
Despite the high selling pressure, BTC managed to hold its position at 30,000 over the past month, signaling a very optimistic and bullish outlook.
Source: glasnode
However, things can quickly go the wrong way. Santiment’s data indicated that the difference between long and short for Bitcoin was steadily decreasing. This meant that short-term holders started to increase. If the trend continues, short-term holders could outnumber long-term holders. This would give short-term holders more leverage over the price of BTC.
If these short-term holders succumb to selling pressure in the future, it could negatively affect the price of BTC.
Source: Sentiment
Traders remain hopeful
Although the number of long-term Bitcoin holders declined, traders remained optimistic about the future of the king coin. Recent data indicated that the put-to-call ratio for Bitcoin dropped significantly.
A lower put-to-call ratio suggested that market participants have more confidence in Bitcoin, as they are more likely to bet on a price rise than a fall. This heightened optimism could attract more investors to the market, potentially leading to increased buying activity and a positive effect on Bitcoin’s price.
Read the Bitcoin price forecast for 2023-2024
A falling put-to-call ratio can also indicate a shift in sentiment from fear or uncertainty to optimism. This shift in sentiment can create a positive feedback loop, as rising prices can further boost investor confidence, leading to a more positive sentiment, and vice versa.
Source: The Block
Another factor that could affect Bitcoin’s future is the state of miners. Miners’ earnings have dropped significantly in recent weeks. If miners’ earnings continue to decline, this could put more selling pressure on the miners. 
Source: Blockchain
