Binance Square
Home
Notification
Profile
Trending Articles
News
Creator Center
Settings
LIVE
LIVE
On-chain_News
--・1.2k views
In a recent analysis of the cryptocurrency market, it was observed that the Bitcoin price correction, which began when the price was at $65.5k, may have ended. This conclusion was drawn after the realization of substantial profits amounting to $2.7B. Simultaneously, the selling pressure in the market has weakened as short-term holders have ceased to realize losses on the price correction. This shift in market behavior is a positive sign for the cryptocurrency market. In addition, the minting of new USDT has been noted. Historically, there has been a strong correlation between the market cap of USDT and the Bitcoin price, indicating potential future growth for Bitcoin. Furthermore, there has been a significant increase in BTC inflows to accumulation addresses, with their reserves reaching an all-time high. This suggests that investors are increasingly holding onto their Bitcoin, which could drive up the price. Finally, a change in long-term investors' behavior has been observed, with distribution weakening. This could be a sign of increased confidence in the market's future performance. Overall, the current market indicators point towards a bullish future for Bitcoin.

In a recent analysis of the cryptocurrency market, it was observed that the Bitcoin price correction, which began when the price was at $65.5k, may have ended. This conclusion was drawn after the realization of substantial profits amounting to $2.7B.

Simultaneously, the selling pressure in the market has weakened as short-term holders have ceased to realize losses on the price correction. This shift in market behavior is a positive sign for the cryptocurrency market.

In addition, the minting of new USDT has been noted. Historically, there has been a strong correlation between the market cap of USDT and the Bitcoin price, indicating potential future growth for Bitcoin.

Furthermore, there has been a significant increase in BTC inflows to accumulation addresses, with their reserves reaching an all-time high. This suggests that investors are increasingly holding onto their Bitcoin, which could drive up the price.

Finally, a change in long-term investors' behavior has been observed, with distribution weakening. This could be a sign of increased confidence in the market's future performance. Overall, the current market indicators point towards a bullish future for Bitcoin.

Disclaimer: Includes third-party opinions. No financial advice. See T&Cs.
0
Explore the lastest crypto news
⚡️ Be a part of the latests discussions in crypto
💬 Interact with your favorite creators
👍 Enjoy content that interests you
Email / Phone number
Relevant Creator
LIVE
On-chain_News
@On-chain_News

Explore More From Creator

The Bitcoin ETF, long-awaited by the crypto community, was approved on January 10, 2024, leading to a significant surge in Bitcoin's price to between $72,000 and $73,000. This approval invigorated the markets, with increasing Bitcoin entries in many ETFs, and further price increases were anticipated. Coinbase exchange stood out during this period, with the 30-day Coinbase Premium Index consistently showing green following the ETF approval. However, by March, ETF withdrawals increased, leading to market disillusionment. Cautious approaches regarding inflation from the US further deteriorated the market, causing ETFs to deflate. Consequently, Bitcoin's price fell to $61,000, and the ETF side is still weakly progressing. A return to former glory requires new market inflows, best monitored by following the daily chart data (30-day Coinbase premium, ETF volume, ETF price). The futures dominating the market should also be considered. Unfortunately, small investors continue to take long positions during downturns and short positions during rises, highlighting the importance of effective psychological state management.
--
The Net Unrealized Profit/Loss (NUPL) metric, which gauges whether investor groups are currently holding unrealized profits or losses, is a useful tool for understanding market trends and sentiment. The NUPL is highly responsive to Bitcoin price movements, reflecting the quick reactions of short-term traders to price changes. During periods of rapid price increase, the traders' NUPL often spikes, indicating quick unrealized gains. Conversely, during price declines, their NUPL quickly shifts to negative, suggesting immediate unrealized losses. The frequency of crossing the zero line in the NUPL highlights the traders' high turnover and active management of positions, indicating a risk-on approach. Periods where both groups' NUPL lines are above zero can signal strong market optimism, while periods below zero suggest widespread pessimism. Recently, the NUPL for traders dipped into negative territory, signaling a rise in fear within this cohort. This trend last occurred on January 24th, following the approval of a spot ETF, when Bitcoin's price sharply dropped. If the NUPL for mid-term holders also turns negative, it could indicate widespread market fear and serve as a crucial risk management indicator. However, this level may represent a significant support line, reflecting the market's resilience.
--
In the realm of Bitcoin, "Spent Output Value Bands" is an advanced analysis technique that categorizes transactions based on the value of previously spent Bitcoin. This method aids in discerning spending patterns and significant movements within the Bitcoin blockchain. Focusing on the $100k to $1M band, an uptick in the frequency of large transactions can be observed when Bitcoin's price escalates. This implies that major market participants are transferring their coins during bullish periods to capitalize on profits. These periods are often deemed Distribution phases, where market players exploit the situation to maximize returns and mitigate risks. The "Spent Output Value Bands" [$100k - $1M] offer invaluable insights into the execution of large transactions on the network, pinpointing spending patterns and potentially dubious activities like massive coin movements. This comprehensive analysis is vital for comprehending market behavior and investment trends within the Bitcoin ecosystem.
--
In the blockchain industry, the proportion of Bitcoin supply currently in profit, represented by the blue line, is notably high. This suggests that a significant portion of the market might be considering realizing gains, potentially leading to increased selling pressure. Historically, such elevated levels have often preceded market volatility and potential downturns as holders begin to liquidate their positions. We are nearing the 'grey line', which signifies the optimism/pessimism threshold for the crypto market. Market participants should be vigilant; crossing below this line could trigger a deeper correction in prices. However, if we remain above this line, market sentiment is likely to stay positive, and any correction could be short-lived. Profitability is a crucial factor in market psychology, especially in the current macroeconomic conditions where expansionary monetary policies do not favor risk assets. Participants should carefully monitor these dynamics as they can significantly influence market movements. This analysis is brought to you by Kripto Mevsimi.
--
In a recent analysis, the correlation between Bitcoin's 30-Day Moving Average MVRV (MA MVRV) and the MVRV ratio was examined. The MVRV ratio, representing the market value to realized value ratio, is a common tool to determine market overvaluation. A low MVRV ratio suggests a balanced or undervalued market, while a high ratio signals overvaluation risk. The study found that when the MVRV ratio surpasses the 30-day MA MVRV, it's generally a bullish signal, whereas a dip below indicates a bearish trend. A long-term undervaluation followed by a short-term overvaluation typically suggests a downturn, while the reverse scenario indicates an upward trend. Recently, instances where the short-term MVRV ratio doesn't exceed the long-term MVRV ratio have been causing market resistance. In conclusion, tracking these data points can provide valuable insights into the effects of long and short-term valuations on Bitcoin, aiding investors in formulating effective strategies.
--

Latest News

1inch Launches Fusion 2.0 To Reduce Cryptocurrency Exchange Costs
--
Two Vulnerabilities in Gains Network's gTrade Protocol Could Have Allowed 900% Profits
--
Ethereum's First SVM Layer2 Network Eclipse CEO Denies Sexual Harassment Allegations
--
OpenAI To Unveil AI Search Engine, Intensifying Competition With Google
--
Grayscale GBTC Experiences Net Outflow While Bitwise BITB, ARKB, and Franklin EZBC See Inflows
--
View More
Sitemap
Cookie Preferences
Platform T&Cs
Sitemap
Platform T&Cs
ba-one-trust-cookie