Market Update - $BTC  Analysis
Current Situation:
- Today's BTC plunge: -8%
- Novice investors may panic, but the market is influenced by the pending decision on a #BTC Spot ETF in January.
Realized Cap - UTXO Age Bands (%):
- 1D to 1W cohort: 5.65%
- Historical correction point: 8%
- Interpretation: Increase in new investor inflows, not overheating.

Funding Rate:
- #Bitcoin Funding Rate: 0.02%
- Historical overheating level: 0.05%
- Interpretation: Futures market not overheated.

On-Chain Data - Short-Term SOPR
- Current value: 5.65%
- Buy signal: <1
- Interpretation: Indicates a buying opportunity when short-term investors sell at a loss.

Strategy:
- Considering Short-Term SOPR, now at 5.65%, potential buying opportunity identified
- Stay alert for a rebound post-correction.

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The $45k Threshold: A Turning Point for Bitcoin's Medium-Term Investors1. Significance of $45k:The $45k mark is pivotal for Bitcoin, representing the cost basis for investors who acquired Bitcoin 2 to 3 years ago.2. Investor Cohort Impact:This cohort, holding 16% of the Bitcoin supply, plays a significant role in the market dynamics.3. Realized Cap Impact:Investors at the $45k threshold represent 33% of the Realized Cap, underscoring their influence on the market.This convergence at $45k marks a crucial juncture for medium-term Bitcoin holders, shaping the narrative and potential future market trends.#onchain #altcoins #bitcoin #ethereum #trading $BTC $ETH $BNB

In recent years, the world has witnessed an explosion in the popularity of cryptocurrencies, especially Bitcoin. Despite its volatile nature, Bitcoin has continued to attract investors who believe in its potential as a store of value and an alternative to traditional financial instruments. As a result, tracking Bitcoin’s on-chain data has become a popular way of monitoring the health of the cryptocurrency market.

Recently, CryptoQuant, a popular on-chain data analytics platform, released new data on Bitcoin’s on-chain highlights, providing insights into the current state of the cryptocurrency. According to the data, Bitcoin’s Stablecoin Ratio has “Returned to May 2022” levels.

This is an important metric because it measures the potential purchasing power of Bitcoin. When the ratio value is low, it means there is a high ability to buy additionally. The current indicator suggests that the Buy & Hold portion has increased, meaning that current buying sentiment has improved significantly, in contrast to the second half of 2022.

In addition, the data also reveals that Bitcoin’s Realized Price has found a support line in the March 10 drop. This means that when Bitcoin fell sharply due to issues in the banking sector, including Silvergate, it fell to near the realized price but was supported and rebounded, suggesting that Bitcoin investment sentiment is solid among risky assets. This is a positive sign for investors who are holding Bitcoin for the long term.

Another important metric provided by CryptoQuant is the Distribution of Bitcoin by UTXO Period (Based on Realized Price). This metric shows the average purchase price by coin holding period and reveals that most new buyers in the last week are profit rights. Specifically, the data shows that buyers who have held Bitcoin for 0 days to 1 day have an average purchase price of 26,556 USDT, while buyers who have held Bitcoin for 1 day to 1 week have an average purchase price of 23,808 USDT.

Overall, the new data released by CryptoQuant provides valuable insights into the current state of the Bitcoin market. While the cryptocurrency market is notoriously volatile, these metrics suggest that there is a positive sentiment among buyers and investors, which is likely to support the cryptocurrency’s growth in the coming months.

#Bitcoin #BTC #CryptoQuant #onchain #azcoinnews

This article was republished from azcoinnews.com

According to a recent report from CryptoQuant, the BTC – Unrealized Loss Model has shown a breakout of the buy zone. This particular model provides on-chain data that reveals how many investors are currently experiencing unrealized losses in Bitcoin. When in a bear market, the unrealized loss indicator tends to rise as it approaches the bottom.

However, as the volume of the crypto market has increased, the peaks and lows of Bitcoin have become smaller over time, causing the top of this model to also decrease with each cycle. During this current cycle, the unrealized loss indicator peaked during the 2022 FTX exchange bankruptcy and has recently broken out of the buy zone due to Bitcoin’s strong rally.

This development suggests that the likelihood of Bitcoin renewing the low has decreased, which is a positive sign for investors. The model predicts that investors who purchase Bitcoin during significant drops in 2023 are likely to see positive results in 2024 and 2025.

For cryptocurrency investors, this news is crucial, and it’s essential to keep track of on-chain data like the BTC – Unrealized Loss Model to make informed investment decisions. By analyzing these indicators, investors can better understand the current state of the market and make more informed decisions about buying or selling Bitcoin.

In conclusion, the breakout of the buy zone in the BTC – Unrealized Loss Model is an important development for cryptocurrency investors. It suggests that the likelihood of Bitcoin renewing the low has decreased, and investors who purchase during significant drops in 2023 could see positive results in 2024 and 2025.

#bitcoin #BTC #onchain #azcoinnews #azcoin

This article was republished from azcoinnews.com

Bitcoin has been making headlines once again, and for good reason. Cryptocurrency has been experiencing a significant surge in value, leading many to wonder if it is in the midst of a bull market. The latest data from CryptoQuant seems to suggest that this is indeed the case. However, it also highlights some concerns that investors should be aware of.

One of the most reliable indicators of a bull market is the On-chain P&L Index, which has been steadily increasing over the past few months. This is a clear sign that investors are buying more bitcoin than they are selling, which is driving up the price. Additionally, inter-exchange flows have also been on the rise, further confirming that bitcoin is in a bull market.

While these indicators are certainly encouraging, caution is still advised. The Bull/Bear Market Cycle indicator, for example, is now indicating an overheated bull territory, with the line turning red. This suggests that a price correction may be on the horizon.

To further illustrate this point, CryptoQuant has identified four on-chain metrics that offer insights into recent bitcoin activity. Firstly, short-term holders have been taking profits at a remarkable profit margin, the highest since November 2021. Secondly, there has been a significant spike in bitcoin inflows into exchanges as the price of bitcoin approached $28K, reaching the highest levels in 2023. This trend is further exacerbated by the fact that bitcoin miners have been contributing to these inflows. Finally, a considerable proportion of bitcoin flowing into exchanges has been from large holders, indicating that whales have been dominating exchange inflows recently.

Bitcoin’s Rally Not Driven by Derivatives or Leverage: Neutral Funding Rates and Low OI Build-Up

However, according to data by Glassnode, it seems that the recent Bitcoin rally is not being driven by derivatives, but rather by spot accumulation on Coinbase. This is certainly a positive sign, as it suggests that the rally is not artificially inflated by leverage.

It is worth noting that the Estimated Leverage Ratio is still below the average of the past three years, and there has been no significant build-up of open interest in futures contracts.

Additionally, the OI is less than 400,000 Bitcoin. While this does not necessarily mean that a price correction is imminent, it does suggest that investors should be cautious and keep a close eye on the market.

In conclusion, the latest data from CryptoQuant suggests that bitcoin is in a bull market. However, investors should exercise caution, as there are indications that a price correction may be on the horizon. By paying close attention to on-chain metrics and other relevant data, investors can make informed decisions about their investments in bitcoin.

#Bitcoin #BTC #onchain #azcoinnews #cryptoquant

This article was republished from azcoinnews.com