Bitcoin is making a strong comeback. After falling to $59,000, BTC has climbed back up to the critical $62,000 level, putting everyone on notice again! Meanwhile, data from on-chain data provider CryptoQuant shows that the number of short-term holders (STH) has dropped from 55%.

In addition, the spot Bitcoin ETF recorded a huge net inflow of US$253.6 million after three consecutive days of losses.

Bitcoin at a critical level: Can it hold $627K?

As Bitcoin price continues to move sideways, attention is now focused on short-term holders (STHs) and their impact on market movements. Recent analysis from CryptoQuant shows that the actual share of STHs has dropped significantly, from 55% three months ago to 40% today.

The change suggests that short-term holders have become more sensitive to price swings, especially those who hold Bitcoin for one week to six months.

CryptoQuant further highlighted that the key price level for STH is currently $627,000. This level has remained stable over the past three months, showing its importance in guiding market trends.

Meanwhile, if Bitcoin can break above $627,000, it could signal a more positive market. Specifically, if Bitcoin breaks above $63,000 on strong volume, it could spark short-term bullish momentum, encouraging traders to engage in more buying activity.

Bitcoin ETFs see net inflows in three days

Adding to the optimism in the market, spot Bitcoin exchange-traded funds (ETFs) staged a major reversal on Oct. 11, recording $253.6 million in net inflows after three consecutive days of outflows. The inflows were primarily driven by the Fidelity Wise Origin Bitcoin Fund, which led the way with a staggering $117.1 million.

Additionally, the ARK 21Shares Bitcoin ETF saw inflows of $97.6 million, while the Bitwise Bitcoin ETF attracted $38.8 million.

Notably, BlackRock’s iShares Bitcoin Trust (IBIT) saw no inflows on the day, making it the third-largest inflow day without IBIT contribution.