Bitcoin, always at the center of attention, shows signs of resilience despite the turbulence at the beginning of this month. Analyses reveal impressive accumulation zones, encouraging technical indicators and increasing dominance over other assets.
All these elements suggest promising prospects for the coming weeks. Let's take stock of the latest movements and what they could mean for the future of the market!
Concentration of purchases
Thanks to the analysis of the URPD (Unspent Realized Price Distribution), a tool that allows you to visualize the price levels where bitcoins were purchased. And interesting trends are visible on the market.
We are currently observing the formation of the largest purchasing area in Bitcoin history around $60,300.
At this level, 2.5% of the bitcoins in circulation were acquired, representing a total of 493,601 $BTC .
What is positive is that this concentration of purchases at such a high price testifies to investors' confidence in Bitcoin's potential to overcome recent events and reach new heights.
In general, such an accumulation is motivated by the hope of making future gains, and not the other way around.
The second largest accumulation zone is around $16,200. This corresponds to the low point of 2022, which shows that many investors have taken advantage of this opportunity to enter the market.
It is observed that investors' purchasing areas are grouped between $56,000 and $69,000 Source: Glassnode
Does this suggest that the short-term bearish dynamic could come to an end, and give way to a new bullish phase?
Probabilities exist. However, it is still important to remain cautious.
If the market underwent a new correction, investors who bought at these levels could find themselves in difficulty. This could undermine their confidence, provoke sales and ultimately accentuate market volatility.
Evidence of a solid upward trend
The SOPR (Spent Output Profit Ratio) reveals that everything has been put back flat. The market as a whole seems to have succeeded in restoring a certain balance.
What is interesting is that when the SOPR bounces back on the level of 1 in the bullish phase. This proves several things: first, that this level of 1 serves as a solid support, indicating that investors are not inclined to sell at a loss.
This also demonstrates their confidence, because they prefer to keep their positions rather than sell at break-even.
It is observed that in the bullish cycle, the SOPR maintains a ratio of 1 - Source:Checkonchain
This rebound is a strong signal that the uptrend is intact. Corrections are absorbed without causing massive sales, thus allowing the market to continue to progress.
Finally, it shows that the market is able to absorb volatility without undergoing a major correction. A very good positive sign of his resilience.
In short, this rebound on the level of 1 is always an encouraging sign for the health of the market and the conviction of the most resilient investors.
Safe haven among risky assets
There is no mystery: Bitcoin remains the undisputed safe haven among cryptocurrencies. With a domination of more than 56% and capital flows higher than those of other assets, Bitcoin offers some stability in an often volatile market.
If Ethereum's market share, stablecoins and altcoins decreases, this does not mean that investors leave the market. On the contrary, they simply seem to favor Bitcoin so as not to miss the recovery when it occurs. In this context, BTC appears to be the ideal choice for those who wish to navigate more serenely through the uncertainties of the market.
An increasingly high dominance over Bitcoin - Source: CryptoQuant
On the BTC/ETH pair, Bitcoin's domination has reached its highest level in the last 40 months. With 78% for Bitcoin, this highlights a significantly higher demand compared to $ETH , despite the recent approval of its #ETF .
To conclude, this week once again confirmed that Bitcoin remains the central pillar of the market, even in times of turbulence. The data clearly show that investors continue to place their trust in this asset and are optimistic for the future!
That said, and even if Bitcoin remains a strong safe haven in this ecosystem, it is essential to remain attentive to the market, and not to be carried away by the fluctuations of the moment.
Have a great Sunday!
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