Bitcoin Bulls: Fifth Bullish Signal Emerges as ETF Inflows Surge
Analyst Darkfost has identified what he believes is the fifth bullish confirmation signal for Bitcoin, suggesting that the cryptocurrency may be entering a bull market. This signal occurs when the cost basis of short-term holders (STH) exceeds the cost basis of active long-term holders (LTH). STH refers to investors who have held their Bitcoin for less than 155 days, while LTH represents those who have held it for 155 days or more.
Darkfost's analysis excludes long-dormant supply, which he defines as supply that has not moved in over seven years. This exclusion allows the LTH cost basis to better reflect actual market conditions. However, Darkfost notes that this standard is an arbitrary choice and may not be perfect.
The latest signal raises confidence in Bitcoin's price trend but does not guarantee future direction. In fact, Darkfost emphasizes that there remains a possibility of error. Nonetheless, he believes that the positive trend is reinforced by ongoing ETF inflows into the market.