CryptoQuant: The average purchase price for short-term holders of BTC is $63,000, which is expected to serve as a support level

CryptoQuant released a market outlook analysis indicating that BTC has risen more than 23% in the past three weeks, from $52,500 to over $65,000. Part of this strong momentum is due to increased demand for Bitcoin spot ETFs. As a result, short-term holders are back in profit. Short-term holders are investors who have transferred Bitcoin within the past 155 days with an average purchase price of $63,000 and are expected to provide support currently. In addition, the futures market shows signs of overheating with approximately $19 billion in open contract positions. Since March 2024, this indicator has exceeded $18 billion six times and each time was followed by a price drop; now it's happening for the seventh time. Meanwhile, spot Bitcoin ETF holdings are being converted into long-term holder supply. Although this seems bullish on its face value but such transitions usually occur late in bull markets.