As the third week of July unfolds, Bitcoin has shattered records by soaring to $123,000, marking a new all-time high. The leading cryptocurrency has notched a remarkable 13% increase in just the past week, igniting conversations about the potential arrival of a euphoric phase in the market. Yet, on-chain data presents a more nuanced narrative.
Bitcoin’s Exclusive Rally Leaves ‘Prawns’ Behind at $123K
Amid this price explosion, market analysis tools reveal that the broader retail sector has not fully engaged in the rally. The “Greed Indicator,” a metric indicating market sentiment, suggests that the fever of broad-based retail participation is still on the horizon.
The rHODL ratio, a measure of long-term holder behavior and wealth distribution, remains at 32%, signaling continued caution among smaller investors, often humorously dubbed as ‘prawns.’ This cautious stance contrasts with historical market euphorias, which typically see a surge in retail investment.
However, the tide may be turning. Recent shifts in the rHODL ratio hint at the burgeoning presence of retail investors, possibly laying the groundwork for a climactic phase often referred to as ‘the last dance.’ Yet, the market teeters on the brink of full-blown euphoria rather than being engulfed by it.
No Signs of Panic Selling Amid Bitcoin’s Rally
Contrary to expectations, Bitcoin’s ascent to its current zenith has not spurred widespread panic selling. Data from the Spent Output Profit Ratio (SOPR) indicates that, while there was some profit-taking around early July, the market has remained robust, with SOPR values holding steady above 1.
This demonstrates that, despite some traders locking in gains, there’s no rush to exit the market. Such disciplined profit-taking suggests a healthy market environment conducive to sustained price growth, supporting the bullish outlook.
