In the latest insight report by blockchain analytics firm CryptoQuant, Binance presently holds the best leverage ratio as the crypto bull run prepares to take off. Despite a major general price crash in the past week, investors and market analysts remain expectant of massive gains by several digital assets over the next year in line […]
Amid a general crypto market price fall in the past week, Ethereum (ETH) recorded a price correction of over 19.5% finding support at a local bottom of $3,100. Since then, the prominent altcoin has only shown slight resilience rising by over 5% in the past two days. However, recent data on wallet activity provides much cause to be bullish on Ethereum’s long-term future. Related Reading: Ethereum Rejected At $4,000 Resistance Again: What Lies Ahead For ETH? Ethereum HODL Addresses Increase Supply Dominance To 16% In a recent QuickTake post, CryptoQuant analyst MAC_D shared some positive insights on the Ethereum market. The crypto market expert reports that the balance of Ethereum Accumulation Addresses has surged by a remarkable 60% from August to December. During this time, these HODL wallets have boosted their portion of ETH supply from 10% to 16% i.e. 19.4 million ETH of 120 million ETH. To explain, the Accumulation Addresses are wallets that hold Ethereum but rarely move or sell their holdings. They are considered a measure of long-term investment and confidence. According to MAC_D, the rapid increase in these Ethereum HODL wallets’ holdings is a new development absent from previous bull cycles. The analyst attributed this massive accumulation rate to investors’ bullish expectations of the incoming Donald Trump administration in the US. These expectations include more favorable regulations on the DeFi industry which represents a major sector of the Ethereum ecosystem. Therefore, regardless of Ethereum’s current price movement, these long-holding wallets are likely to keep increasing their holdings in anticipation of future price growth. In addition, MAC_D emphasizes the importance of these Accumulation Addresses in that the price of Ethereum has never slipped below their realized price. Therefore, a continuous purchase by these wallets provides a high potential for a long-term price gain. Related Reading: Ethereum Investment: Trump Crypto Project Grabs 722 ETH At $2.5 Million What’s Next For ETH? In regards to Ethereum’s immediate movement, MAC_D warns that macroeconomic factors are likely to exert a stronger influence on ETH’s price in the short-term as illustrated by the recent price crash induced by potential reduced interest rate cuts in 2025. At the time of writing, the altcoin trades at $3,352 following a 3.07% decline in the past 24 hours. In tandem, ETH’s daily trading volume is down by 53.25% and valued at $31.15 billion. Following recent price falls, Ethereum also presents a negative performance on larger charts with losses of 14.74% and 1.05% in the past seven and thirty days, respectively. On a positive note, the asset’s price remains far above its initial price point ($2,397) at the start of the post-US elections price rally, indicating that long-term sentiment remains positive. With a market cap of $401 billion, Ethereum continues to rank as the second-largest cryptocurrency and largest altcoin in the digital asset market. Featured image from INX, chart from Tradingview
The United States election was one of the most defining events in the crypto space in 2024. Specifically, the reelection of Donald Trump revived Bitcoin and the entire crypto market after an uninspiring second and third quarter. One of the promises made by President-elect Trump in the run-up to the polls was the institution of […]
As Bitcoin currently faces a downturn and now seeing a recovery suggesting a preparation for its next bull run, market participants appears to be analyzing trends in exchange leverage and liquidity. Particularly, CryptoQuant has pointed out that leverage ratios on centralized exchanges have become a focal point, offering insights into the potential risks and opportunities shaping the crypto market. The platform’s recent data highlights the importance of assessing these ratios to gauge the financial stability of exchanges and the impact on trading dynamics. Related Reading: As Bitcoin Reclaims $100,000, Warning Signs Emerge from Long-Term Investors Leverage Trends And Exchange Stability A detailed analysis revealed that Binance maintains strong reserves relative to its open interest, signaling a strong ability to manage market volatility. In contrast, smaller exchanges like Gate.io and Bybit exhibit higher leverage ratios, raising questions about their capacity to withstand liquidity crunches. According to CryptoQuant, monitoring these metrics has become even more “critical” in light of past events, such as the collapse of FTX in November 2024, which was triggered by insufficient reserves against high open interest. CryptoQuant’s latest findings further highlight the varying leverage strategies employed by major cryptocurrency exchanges. Binance emerged as a leader in maintaining a stable leverage ratio while expanding its Bitcoin open interest from $4.45 billion in December 2023 to $11.64 billion in December 2024. Despite this growth, Binance’s Bitcoin, Ethereum, and USDT reserves have consistently exceeded its open interest, ensuring liquidity and stability even during volatile market conditions. The exchange’s leverage ratio, which rose modestly from 12.8 to 13.5 over the past year, remains the lowest among its peers. Conversely, exchanges like Gate.io, Bybit, and Deribit exhibit significantly higher leverage ratios of 106, 86, and 32, respectively. CryptoQuant wrote: These figures show their Bitcoin open interest exceeds or approaches their reserves, with similar patterns observed for Ethereum. Coinbase Premium: A Key Indicator For Bitcoin Traders Beyond leverage ratios, another crucial metric shaping Bitcoin market sentiment is the Coinbase Premium. This indicator, which tracks the price difference between Bitcoin on Coinbase and other exchanges, is a barometer for institutional demand and market trends. A CryptoQuant analyst named BQYoutube suggested that traders adopt a cautious approach based on Coinbase Premium signals: When the premium is negative, it may be wise to stay on the sidelines. Related Reading: Bitcoin Rally Loses Momentum: Could A Drop To $75,000 Signal The Final Correction? However, a positive premium often signals the return of strong demand, offering a strategic entry point for traders looking to ride major market trends. According to the latest data, this metric currently sits on the negative side, suggesting to stay on the sidelines. BQYoutube added: You might miss few small trends with this approach but at least you can ride all the big trends and avoid losses in dips or downtrends. Featured image created with DALL-E, Chart from TradingVie
Bitcoin, the leading cryptocurrency by market capitalization, has recently experienced a significant and sudden price correction, sparking debate among investors. Concerns have surfaced about whether this downturn signals the conclusion of the current bull cycle or merely represents a temporary setback. While short-term holders face losses, long-term metrics provide a broader perspective on Bitcoin’s trajectory, as analyzed by CryptoQuant’s Avocado Onchain in a recent report. Related Reading: As Bitcoin Reclaims $100,000, Warning Signs Emerge from Long-Term Investors Opportunity Or End of The Bull Cycle? According to Avocado Onchain, the realized price for investors who entered the market during Bitcoin’s recent peak at $98,000 places them in a loss-making position. However, for those who invested between one to three months ago, the realized price is significantly lower at $71,000, offering a cushion against the current correction. Avocado pointed out that historical patterns from Bitcoin’s 2021 bull cycle reveal similar alternations between record highs and sharp corrections, suggesting that these dips may not necessarily indicate the end of the cycle. Instead, they have historically been “opportunities” for market rebalancing and subsequent growth. A key indicator analyzed is the 30-day moving average of the short-term SOPR (Spent Output Profit Ratio). This metric tracks whether recent market participants are selling at a profit or a loss. The current SOPR data reveals that recent short-term inflows into Bitcoin have yet to result in substantial profit-taking. Unlike previous cycle peaks characterized by aggressive selling, the ongoing correction appears subdued, indicating that the market may still have room for upward movement. Bitcoin Short-Term Dips vs. Long-Term Trends Additionally, Avocado Onchain highlights the importance of distinguishing between short-term corrections and broader cycle trends. Bitcoin’s tendency to rebound after corrections in past bull cycles reinforces the notion that the current downturn might not mark the cycle’s end. These insights align with the behaviour of long-term holders, who often use corrections to consolidate their positions, strengthening market resilience. Related Reading: Is The Bitcoin Top In For This Cycle? On-Chain Signals You Need To Know Avocado concluded the analysis, noting: For investors who have yet to enter the market, this may be an excellent opportunity to buy Bitcoin at a discount. Instead of succumbing to panic selling during short-term downturns, adopting a long-term perspective and a dollar-cost averaging (DCA) strategy could be a more effective approach. At the time of writing, Bitcoin is seeing a gradual rebound in its price surging by 1.3% in the past 1 hour. Regardless, the asset still appears to be overshadowed by the bears as BTC remains down by 3.5% in the past day and 10.5% from its peak of $108,135 recorded last week. Featured image created with DALL-E, Chart from TradingView
Before yesterday’s plunge, Bitcoin recent rally was able to propel the asset to a new all-time high of $108,000, marking another significant milestone in its upward trajectory. However, according to latest analysis, this notable price surge is accompanied by signs of potential market volatility, as long-term holders begin to exhibit selling activity. Attention has been turned to the Binary Coin Days Destroyed (CDD) metric, a critical tool for assessing the behavior of long-term Bitcoin holders. Related Reading: Bitcoin Breaks ATH Pushing Back Into Price Discovery – BTC To $130K? What Do Long-Term Holders Currently Signal? The Binary CDD metric tracks the activity of long-term holders by measuring the number of “coin days” destroyed relative to the total supply. When this metric spikes, it often indicates increased selling pressure from long-term investors. According to a CryptoQuant analyst, ShayanBTC, the Binary CDD metric has recently recorded a sharp increase, coinciding with Bitcoin’s new price high. Historically, such spikes in this metric have been precursors to market corrections, suggesting that these holders are taking advantage of current price levels to reduce their exposure. Shayan added that the long-term holders actions often serve as a barometer for broader market sentiment. The recent surge in the Binary CDD metric suggests that these holders might view the peak above $108,000 as a strategic exit point. If this selling pressure intensifies, it could lead to heightened market volatility and potentially trigger a price correction. Bitcoin Market Outlook Bitcoin has recorded a rollercoaster move in the past day. Particularly, following the FOMC news outcome yesterday along with the speech from Jerome Powell, Chair of the Federal Reserve of the United States, Bitcoin saw a significant plunge in its price dropping to as low as the $98,000 level. However, the latest price action has been quite interesting as BTC is showing a rebound. In the early hours of Thursday, Bitcoin saw a recovery in price after reclaiming the $100,000 to trade as high as above $105,000. Currently, Bitcoin has seen a retrace back to a price of $100,718, at the time of writing, marking a 3.5% decrease in the past day and roughly 6.6% reduction away from its all-time high (ATH). Meanwhile, adding to Shayan’s narrative, another CryptoQuant analyst, Onatt, highlighted additional market indicators that hint at potential turbulence. The Coinbase Premium Index, which tracks the price difference between Coinbase and other exchanges, is currently in negative territory, indicating increased selling pressure. Related Reading: Bitcoin Price Still Mirroring Bullish Move From 2023, What To Expect After Hitting $108,000 ATH Furthermore, the adjusted Spent Output Profit Ratio (aSOPR), a metric used to gauge profit-taking behavior, has shown sudden spikes. According to Onatt, these signals collectively highlights the need for sustained institutional demand, particularly through Bitcoin exchange-traded funds (ETFs), to stabilize market conditions. Featured image created with DALL-E, Chart from TradingView
Bitcoin’s upside momentum is holding firm, reaching a new all-time high and showcasing potential for more price growth towards critical resistance levels. While the recent move has triggered a wave of optimism about its future performance, pessimism still lingers among many individuals. Skeptics Remains Unchanged By Bitcoin’s Upward Strength Seasoned macro researcher and author at […]
The Bitcoin funding rate over the 30-day EMA signals “no visible signs of late-cycle overheating,” according to a crypto analyst.
Bitcoin has continued its upward trajectory as recent market trends highlight a shift in investor behaviour. According to data shared by CryptoQuant analyst Avocado Onchain, spot market demand has emerged as a significant driving force behind Bitcoin’s ongoing price increases. This trend indicates growing buying pressure from long-term investors, as speculative activity in the futures market appears to be cooling. Related Reading: Bitcoin’s Next Big Move? Key Metric Reveals When to Cash In Profits Bitcoin Spot Market Demand Gains Strength The analyst’s observations provide insights into Bitcoin’s ongoing bull cycle, which began in the first half of 2023. According to Avocado, initially, the futures market led the charge in pushing Bitcoin’s price upward, signalling a speculative phase fuelled by short-term traders. However, this momentum was interrupted earlier this year when both the futures and spot markets experienced reduced trading activity starting in March. Since October, market activity has returned, with trading volumes rising across both futures and spot markets, providing fresh support for Bitcoin’s rally. In his analysis, Avocado Onchain noted a key trend: while futures market activity has recently declined, demand in the spot market has been steadily increasing. Spot market activity refers to the actual purchase of Bitcoin on exchanges for immediate delivery, typically driven by investors with a long-term perspective. This stands in contrast to futures markets, where traders speculate on price movements using contracts that do not require immediate ownership of the asset. Spot Market Demand Takes the Lead as Bitcoin Continues Its Upward Momentum “While futures market activity has declined, spot market demand continues to increase. This suggests that speculative excess in the futures market is cooling, while buying pressure in the spot market is… pic.twitter.com/M4o4TsG02V — CryptoQuant.com (@cryptoquant_com) December 17, 2024 What This Means For BTC The analyst suggests that this shift indicates speculative excess in the futures market may be stabilizing. Historically, overheated futures markets have led to volatility, often triggering liquidations. However, the cooling of futures market activity, coupled with rising spot market demand, reflects a more sustainable form of buying pressure that can underpin Bitcoin’s long-term growth. The CryptoQuant analyst noted: Looking ahead, the futures market is likely to undergo cycles of overheating and liquidations, which will contribute to Bitcoin’s price growth. This price movement will, in turn, encourage further capital inflows into the spot market. Additionally, Avocado Onchain pointed to the 30-day exponential moving average (EMA) of Bitcoin’s funding rate, which shows “no signs of late-cycle overheating.” Related Reading: Bitcoin To Hit $180,000 If These Cycle Top Indicators Are Absent, Says VanEck’s Sigel The funding rate measures the cost of holding futures contracts and is often used as an indicator of market sentiment. Avocado mentioned that as BTC funding rate remains balanced, it suggests that BTC’s price movements are not being driven solely by leveraged positions, reducing the risk of sudden price reversals. Featured image created with DALL-E, Chart from TradingView
In a statement on X, Ki Young Ju, CEO of CryptoQuant, a leading on-chain analytics firm, provided a stark assessment of MicroStrategy’s financial health in relation to its Bitcoin investments. Can MicroStrategy Go Bankrupt? Ju stated, “MicroStrategy only goes bankrupt if an asteroid hits Earth. For 15 years, Bitcoin has never dropped below the cost […]
The general cryptocurrency community is brewing with excitement and optimism following Bitcoin’s rally to a new all-time high on Monday. Despite the significant price growth, there are speculations that the uptrend may not be ending anytime soon, suggesting BTC’s potential for more increases to higher levels or milestones. Next Big Milestone For Bitcoin On The […]
Given Bitcoin’s renewed upside momentum, robust optimism and confidence in the flagship digital asset have risen significantly within the crypto community. As a result, small-scale or retail investors are demonstrating a strong interest in BTC, indicated by their continuous accumulation of the coin at a rapid rate. Small Bitcoin Wallets Under 1 BTC On The […]
The Bitcoin price performance in 2024 is one for the history books, with the premier cryptocurrency crossing the $100,000 mark for the first time ever. However, hitting this milestone opened the door to another conversation — when will the market top be in? As a result, several predictions of the Bitcoin price top have emerged […]
Bitcoin “shrimps” are showing firm conviction that the price of Bitcoin is going to continue its uptrend, according to a crypto analyst.
Bitcoin has shown a significant recovery, reclaiming the $100,000 milestone yesterday. It trades at $101,805, marking a 1.4% increase over the past 24 hours. Amid this price performance, analysts have closely examined various metrics to gauge potential market movements, including identifying optimal cash-out moments. Meanwhile, recent data reveals intriguing patterns that could guide investor strategies. When Should You Cash Out Your Bitcoin? One key insight shared by a CryptoQuant analyst, Onchain Edge, highlights a critical signal for when investors should consider reducing their Bitcoin holdings. Other metrics suggest a resurgence in buyer activity, reinforcing optimism in Bitcoin’s ongoing rally. Onchain Edge emphasizes the importance of the BTC supply loss percentage as a marker for peak market phases. He notes that when this metric drops below 4%, it could signify the culmination of a bull market and the beginning of an overheated market phase. Currently, the current supply loss percentage stands at 8.14%, providing room for further price growth before a potential peak. The analyst warns, however, that failing to act at the right time during such peak phases could lead to substantial losses in a subsequent bear market. Elaborating on his analysis, Onchain Edge encourages investors to consider dollar-cost averaging (DCA) out of their positions once the supply loss percentage breaches the 4% threshold. It is worth noting that this strategy by Edge could help mitigate the risk of holding through the transition into a bear market. Historically, peak bull run phases are characterized by significant profits among market participants, often followed by sharp corrections. Investors can protect their gains by exiting strategically while preparing for lower entry points during future market downturns. BTC Buyer Activity Resurges Meanwhile, in a separate analysis, another CryptoQuant analyst known as Crazzyblockk sheds light on the behavior of takers on Binance, one of the largest cryptocurrency exchanges. Data from the Taker Buy/Sell Ratio shows a shift toward aggressive buying activity. This metric, which compares the volume of buy orders filled by takers to sell orders, had experienced a period of negative monthly values, indicating a preference for selling among market participants. However, the ratio has recently turned positive, signifying renewed interest from buyers. This trend suggests reduced selling pressure and growing optimism among traders about Bitcoin’s potential price increase. According to Crazzyblockk, sustaining this momentum is critical for maintaining the bullish trajectory, particularly as Bitcoin consolidates around the psychologically significant $100,000 level. Featured image created with DALL-E, Chart from TradingView
Ethereum, the second-largest crypto by market capitalization, has recently demonstrated strong bullish momentum, breaching above $4,000. It is worth noting that its price rally has been accompanied by a significant spike in its funding rates, a critical metric reflecting sentiment in the futures market. The metric, analyzed by CryptoQuant analyst ShayanBTC, has reached levels not seen since January 2024. This surge in funding rates suggests a growing optimism among traders, with many anticipating the possibility of Ethereum reaching new all-time highs. Related Reading: Large Ethereum Transactions Grow As ETH Breaks Yearly Highs But Is A Correction On The Horizon? Despite this enthusiasm, the market’s current state raises questions about sustainability. Historically, such spikes in funding rates have often preceded short-term corrections, stabilizing the market. According to Shayan, the current situation mirrors January 2024, when Ethereum saw an 88% rally following similar market conditions. The analyst suggests that while the current rally may pave the way for further gains, a pullback could be essential for healthier long-term growth. Funding rates serve as a barometer for market sentiment, particularly in the futures market. A positive funding rate indicates a preference for long positions, with traders expecting higher prices. Ethereum Funding Rates Hit Multi-Month High “Funding rates are at levels last seen in January 2024, when Ethereum rallied by 88%. This reflects increased long-position interest as optimism grows. Similar to January, this sharp increase suggests the likelihood of a pullback.” –… pic.twitter.com/euKGhIqNKO — CryptoQuant.com (@cryptoquant_com) December 9, 2024 As Ethereum’s funding rates hit multi-month highs, this trend signals a surge in bullish sentiment. However, history shows such sharp increases can create short-term market imbalances, leading to corrections. Shayan noted: While Ethereum’s rally is underpinned by bullish sentiment, the spike in funding rates signals the need for a short-term correction, paving the way for healthier and more sustainable price growth. Ethereum Market Performance Ethereum remains below the $4,000 mark after falling below this level last week. Currently, ETH is trading at $3,819, reflecting a 4.9% decline in the past 24 hours. Despite the recent drop, the asset has gained nearly 30% over the past month. However, ETH’s latest dip further distances it from its all-time high of $4,878 in 2021, leaving it 20.5% below that peak. Related Reading: Ethereum Active Addresses Surge By 36% In Support Of Bullish Price Action – Details Nevertheless, market analysts maintain a bullish outlook on Ethereum, with many projecting potential new highs for the asset shortly. $ETH Hello everyone, I felt the need to share a detailed #ETHUSDT analysis with you. I hope you find it helpful. First and foremost, despite the recent rise in $BTC, Ethereum and altcoins have not yet responded as expected. Therefore, I encourage those who are worried to remain… pic.twitter.com/XsB2HroNnG — Talha Batuhan Ayna (@TBatuhanAyna) December 9, 2024 Featured image created with DALL-E, Chart from TradingView
Excitement and speculations about a notable price spike for Bitcoin, the largest digital asset following its recent ascent to the $100,000 level, are emerging rapidly within the crypto community, with crypto enthusiasts pointing to new all-time highs in the upcoming weeks. Next Leap For Bitcoin From The $100,000 Mark In light of renewed market upside momentum, […]
A crypto analyst says Bitcoin is in a state of “musical chairs” right now and warns that traders should be “prepared when the music stops.”
The price of Bitcoin (BTC) has dipped by 1.66% in the last day after failing to break past $102,000 on Friday. Currently, the crypto market leader seems to be in consolidation, with little indication of its next price movement. However, recent whale activity has pointed to a continuous bullish trajectory. Related Reading: Bitcoin ETFs Surpass […]
The year 2024 will be one for the history books for the cryptocurrency industry and, especially, for Bitcoin. After kickstarting the year with the approval of spot exchange-traded funds (ETFs), it didn’t take long before the premier cryptocurrency rode on the back of fresh institutional capital to a new all-time high. This has pretty much […]
The role of Bitcoin long-term holders (LTHs) has again come under the microscope of analysts as the asset currently faces a 4.5% correction from its all-time high (ATH) above $100,000 created on Thursday. These holders, defined as those who retain their Bitcoin for over 155 days, are known to influence market movements through their accumulation and distribution behaviors significantly. A recent analysis by CryptoQuant analyst Datascope has highlighted key trends in LTH activity that could signal the next phase for Bitcoin. Related Reading: Hut 8 Unveils $750 Million Initiative To Establish Strategic Bitcoin Reserve Key Trends And Historical Context Datascope’s insights highlight the importance of the LTH accumulation/distribution ratio as an on-chain metric. This ratio reflects whether LTHs are amassing Bitcoin, indicative of market bottoms, or liquidating holdings during price peaks, often signaling corrections. Historical patterns from 2013 and 2017 saw LTHs engaging in substantial selling at market highs, while periods like 2019 and 2020 were marked by intense accumulation, paving the way for bull markets. According to datascope’s analysis, the peaks of 2013 and 2017, which were characterized by heightened selling activity from LTHs, correlated with significant price corrections. These corrections, fueled by profit-taking, marked the culmination of bullish cycles. Conversely, during the lows of 2019 and 2020, LTHs exhibited strong accumulation tendencies, which signalled confidence in Bitcoin’s long-term potential and laying the groundwork for subsequent price surges. Now in 2024, datascope pointed out that the LTH metric is once again providing critical insights into market conditions. Recent data reveals increased selling activity among LTHs, a behaviour observed during periods of market overheating or resistance at current price levels. While this trend could hint at an impending correction, it also raises the possibility of the market transitioning into a new accumulation phase. Echoing this, a recent report from CryptoQuant reveals there has been sustained buying pressure from US investors. Bitcoin passes $100k as institutional demand drives the market. The Coinbase Premium Index highlights sustained buying pressure from U.S. investors. pic.twitter.com/eZvKFCmVxs — CryptoQuant.com (@cryptoquant_com) December 5, 2024 Current Outlook On Bitcoin Bitcoin has continued to see decline in its price following the $103,679 ATH recorded yesterday. At the time of writing, BTC has dropped 2.2% in the past 24 hours with a current trading price of $99,208. Regardless of this, the asset appears to still be in an uptrend. over the past month, Bitcoin is still up by roughly 33.6% with a current market capitalisation of $1.965 trillion. Related Reading: Is Bitcoin’s $100K Just the Beginning? Key Insights from Supply Distribution Data datascope commenting on Bitcoin’s current market outlook wrote: The market is at a crossroads, potentially entering a new upward cycle or consolidating before a deeper correction. With Bitcoin in an “overheated” zone, investors should exercise caution and evaluate profit-taking opportunities. Featured image created with DALL-E, Chart from TradingView
Investors and traders are engaging with Bitcoin following its remarkable price growth in the past few weeks, cementing its position as the leading digital asset in the crypto market. However, reports show that this robust optimism is spotted mainly among BTC’s short-term investors. Bullish Sentiment Shifts Toward Bitcoin’s Short-Term Holders In a sudden turn of […]
Bitcoin has achieved a major milestone, trading at six-figure levels for the first time since its inception. On Thursday, the cryptocurrency reached a new all-time high of $103,679, marking a year-to-date surge of over 140% and pushing its market capitalization above $2 trillion. This achievement has reignited enthusiasm within the investor community, solidifying Bitcoin’s position as a key player in the global financial market. Despite this impressive feat, Bitcoin has experienced a slight retracement. At the time of writing, it trades at $101,573, still up by 6% in the past 24 hours. Related Reading: Retail Demand Surges for Bitcoin: The Journey Towards $100K and Beyond Begins? What Comes Next? Market intelligence platform IntoTheBlock weighed in on this development, offering insights into Bitcoin’s potential trajectory. The platform’s analysts highlighted that Bitcoin’s capped supply and growing interest from institutional investors and even countries create significant upward potential. Bitcoin breaks $100.000! A major milestone, but what’s next? With a limited supply and substantial interest from large investors (and even countries), the potential seems limitless. However, we recommend taking a look at prior cycles to evaluate potential. This chart shows… pic.twitter.com/5b60oTRJy3 — IntoTheBlock (@intotheblock) December 5, 2024 However, past cycles suggest diminishing returns, with historical post-halving cycles showing returns of 7,900% in 2013, 2,560% in 2017, and 594% in 2021. Based on these trends, IntoTheBlock expect a more conservative growth range of 100%-200% from the halving price, suggesting a peak between $130,000 and $190,000. IntoTheBlock analysts particularly wrote: So while some are calling for a million dollars per Bitcoin, a more reasonable expectation would be a 100%-200% return from the halving price, placing the top between 130k and 190k. However the analysts also pointed out: “That is, unless Bitcoin becomes a global reserve asset of course.” Analyzing Market Trends and Investor Behaviour Meanwhile, a CryptoQuant analyst has provided additional insights into Bitcoin’s recent performance and market behaviour. According to the analyst, Bitcoin purchases continue to rise, with the Coinbase Premium Index reflecting strong buying activity in the United States. The index, which tracks the difference in price between Coinbase Pro and Binance, shows sustained positive data, indicating active participation by US investors. The analyst emphasized the importance of monitoring this index alongside broader trend analysis. For example, during periods classified as “fear phases,” where buyers retreat and bearish momentum fails to materialize, the market often creates opportunities for strategic entry points. Related Reading: $1.87B Bitcoin Withdrawals From Coinbase In 24H – What This Means To Price If the index remains in the positive zone, it signals a continuation of the uptrend, making pullbacks an optimal time for positioning. Until Bitcoin reaches what the analyst describes as the “excess phase,” buying positions should be held, while profitable positions should be secured to mitigate risk. Featured image created with DALL-E, Chart from TradingView
Bitcoin has reached a landmark moment in its history earlier today, crossing the $100,000 price mark for the first time and cementing its position once again as the largest cryptocurrency by market capitalization. As it stands, BTC all-time high is at roughly $103,679. This significant achievement has prompted a detailed analysis of its supply distribution, offering valuable insights into the behavior of long-term and short-term holders and the broader implications for the Bitcoin market. Related Reading: Bitcoin’s Silent Whales: Rising Exchange Inflows Hint at Market’s Next Big Move Supply Distribution and Market Behaviour Amid the excitement of Bitcoin’s new all-time high, an analysis from CryptoQuant’s analyst, Crazzyblockk, sheds light on how this milestone impacts the cryptocurrency’s realized cap and the broader market structure. While the milestone reflects growing global adoption and investment confidence, it also raises questions about the potential trajectory of the market. According to the analysis, Bitcoin’s supply is currently divided between two key groups of holders: long-term holders (LTHs) and short-term holders (STHs). CryptoQuant data reveals that out of Bitcoin’s total supply, over 14.5 million BTC are held by LTHs, while nearly 5 million BTC are in the hands of STHs. Despite the price surge, only 52% of Bitcoin’s realized cap is attributed to STHs, a stark contrast to previous market peaks where this figure typically exceeded 80%. Historically, Bitcoin’s realized cap trends reveal distinct behaviors during market cycles. During bear market phases, most realized cap shifts towards LTHs as accumulation intensifies, signaling the end of the bearish trend. Conversely, during bull market peaks, the realized cap tends to be dominated by STHs, driven by speculative trading and short-term profits. However, the current distribution shows a higher concentration among LTHs, indicating a deviation from traditional market patterns. Implications for Bitcoin’s Market Momentum According to the CryptoQuant analyst, the relatively low realized cap held by STHs in the current market cycle suggests reduced selling pressure, which may support sustained price growth. The analyst revealed that with a significant proportion of Bitcoin held by LTHs, market confidence appears strong, potentially providing a buffer against abrupt price corrections. This stability is crucial as it reflects long-term investor trust and reduces the likelihood of speculative volatility. Related Reading: Bitcoin’s Next Move? Coinbase Premium Suggests a Short-Term Rally May Be Brewing In addition, the analysis also highlights that this supply distribution aligns with a long-term bullish outlook for Bitcoin. The reduced participation of STHs in the realized cap indicates room for further upward movement as more capital may enter the market without triggering a significant sell-off. The analyst wrote: In conclusion, Bitcoin reaching $100,000 is a historic achievement, but the current supply dynamics suggest the potential for further upward movement, given the stability provided by LTHs and the relatively low participation of STHs in the realized cap. Featured image created with DALL-E, Chart from TradingView
The cryptocurrency exchange market appears to have undergone a transformative shift in 2024, driven largely by a significant uptick in institutional activity. According to insights shared by CryptoQuant on its QuickTake platform, major exchanges are witnessing unprecedented growth in Bitcoin and USDT deposits. This trend highlights the increasing confidence of institutional investors in digital assets, […]
Bitcoin has experienced notable whale activity since the conclusion of the US election on November 5, with an increase in the volume of Bitcoin transferred to exchanges by active whale addresses. However, contrary to what one might expect, there hasn’t been a significant surge in profit-taking activity among these large holders, a CryptoQuant analyst named onatt revealed in a recent post on the QuickTake platform. Related Reading: Bitcoin to Enter Final Bull Phase? Key Indicator Hints at Major Price Movement Whale Activity Suggests Market Stability but Signals Potential Risks The report by CryptoQuant analyst Onatt sheds light on this whale activity, emphasizing the lack of immediate selling pressure despite the increase in Bitcoin inflows to exchanges. Instead of liquidating their holdings, whales appear to be employing a “wait-and-see strategy,” the analyst wrote. They seem to utilize their Bitcoin for purposes like hedging, over-the-counter (OTC) transactions, or collateral. Although this approach points to market stability, onatt advised that “these movements should be closely monitored to anticipate any possible market impact.” Providing more details of this development, Onatt’s analysis reveals that the Adjusted Spent Output Profit Ratio (SOPR) metric, which tracks profit-taking activities, does not yet signal significant movements. Historically, large inflows of Bitcoin into exchanges have often been associated with increased selling pressure, but the current scenario deviates from this trend. Instead, these movements may reflect strategic maneuvers by whales as they prepare for potential market shifts. Onatt also noted that while the immediate risk of sell-offs appears low, the ongoing rise in Bitcoin exchange inflows could foreshadow future volatility. Bitcoin Market Performance Bitcoin so far appears to have hit a wall ever since it traded above $95,000. Over the past weeks, Bitcoin has been unable to move further from this price level but has managed to maintain it despite the bears attempts to push it below $95,000. Over the past week, BTC hasn’t moved much and only registers 2.5% increase and in the past 24 hours, the asset has seen just a slight decrease by 1.2% to trade for $95,837 at the time of writing currently. As for Bitcoin’s daily trading volume, interestingly, there has been an opposite trend. Despite Bitcoin’s small price movement into decline, BTC daily trading volume has notably increased from below $60 billion on November 29 to now at $94.5 billion. Related Reading: MicroStrategy Continues Bitcoin Buying Streak: 15,400 BTC Added This Monday Given Bitcoin’s current price trajectory, it is worth noting that this increase in BTC’s trading volume over the past few days might be from sell-offs. According to a renowned analyst known as Ali on X, Bitcoin has formed a head and shoulder pattern on its 1-Hour chart which now signals a correction to $90,000 levels. #Bitcoin $BTC could be forming a head-and-shoulders pattern, which could trigger a price correction to $90,000! pic.twitter.com/mWLDabsYRV — Ali (@ali_charts) December 3, 2024 Featured image created with DALL-E, Chart from TradingView
A crypto analyst highlighted significant Bitcoin inflows to crypto exchanges from whales, who are still holding back on making any major moves.
Major cryptocurrency assets, excluding Bitcoin, usually known as Altcoins, are currently demonstrating strong momentum, rising significantly to pivotal levels in the past few days. While there is the belief that the tokens are surging due to a drop in Bitcoin’s dominance, several seasoned market experts think otherwise. Has The Much-Awaited Altcoin Season Begun? In an insightful prognosis […]
XRP has experienced an extraordinary surge in recent weeks, with its price skyrocketing by 380% over the past 23 days. In just the last four days, the price jumped 75%, reaching a peak of $2.87 on December 2. This rapid ascent appears to be fueled by significant buying activity from large investors, commonly known as “whales.” Ki Young Ju, CEO of on-chain analysis firm CryptoQuant, highlighted that these whales are primarily operating through the US based exchange Coinbase. On December 2, he pointed out that “Coinbase whales are driving this XRP rally,” noting that Coinbase’s minute-level price premium ranged from 3% to 13% during the surge. In contrast, Upbit—a Korean exchange with more XRP investors than Binance—showed no significant premium, suggesting the buying pressure is predominantly originating from the United States. On his alternative X account (@kate_young_ju), Ki Young Ju hinted at possible insider activity influencing the market dynamics, stating, “Someone knew something.” Related Reading: XRP Price Prediction: Analyst Says History Is Repeating Itself, Here’s How Today, he cautioned traders against shorting XRP. “Shorting XRP right now seems risky, imo. $25B XRP deposit before the pump might look like market manipulation but could simply be front-running. This insider whale might know something extremely bullish about XRP, such as spot ETF approval,” he speculated. He further shared a chart “XRP: Retail Activity Through Trading Frequency Surge (Spot & Futures), which indicates that retail trading activity for XRP has surpassed the highs of 2021 and is nearing levels last seen in January 2018, when XRP reached its all-time high of $3.92. Related Reading: Crypto Analyst Says Litecoin Is About To Pull An XRP, Here’s What He Means Observing the one-year cumulative volume delta (CVD) of taker buy/sell volume, he remarked: “1-year CVD of Taker Buy/Sell Volume for XRP shows a historic rebound. Whales are aggressively using market orders, driving overwhelming demand.” A 700% Rallye Incoming For XRP Against BTC? From a technical analysis perspective, crypto analyst Jacob Canfield emphasizes the importance of examining the XRP/BTC pairing. He notes that XRP is currently at a critical resistance zone on the BTC pair chart (XRPBTC), having just reached the $2.75 level on the USDT pair—a resistance point since December 2019. Canfield suggests that a breakout here could signal a potential 240% move back to key resistance zones from 2017, 2018, and 2019. “If we get real FOMO, then we could be setting up for another 700% move to all-time high against Bitcoin,” he commented, acknowledging the “two of the strongest monthly candles for XRP that we’ve seen in over 5 years.” Looking at shorter time-frames of the XRP/USD pair, Canfield highlights the utility of support and resistance levels to identify new entry points in these time frames. “In bull markets, you need to use low time frame support/resistance to find new entries. 5 min/15 min are the best. XRP as an example – $2.20 was the clear S/R invalidation. Base of the biggest green candle = base of impulse. Usually the best place to re-enter a trade.” At press time, XRP traded at $2.63. Featured image created with DALL.E, chart from TradingView.com
Bitcoin, the world’s leading cryptocurrency, appears to be on the brink of a potential sharp rise. According to a CryptoQuant analyst, Crypto Dan, the market could experience a significant upward trend within the next two months. This insight, shared on the CryptoQuant QuickTake platform, is based on a critical market indicator that has historically signaled major price rallies. Related Reading: Data Shows Selling Pressure Mounts On Bitcoin: Is The Bull Run at Risk? Bitcoin Market Outlook: Sharp Rise Incoming In the post titled “Strong Rise in Bitcoin is Expected Within 1-2 Months”, Crypto Dan highlights the emergence of a “golden cross” in the Spent Output Profit Ratio (SOPR) indicator. This occurrence, he notes, is a rare event that typically happens only once or twice during an entire bull market cycle. As part of the current bullish cycle that began in January 2023, its reappearance is being seen as a strong precursor to a substantial market move. For further context, the SOPR Ratio indicator measures realized profits and losses in the Bitcoin market, offering insight into investor sentiment. The “golden cross” identified by Crypto Dan signifies a pivotal moment in the bull cycle. Historically, this signal has been followed by strong price increases within two months of its appearance. Crypto Dan explained that the market is likely entering the final phase of the current upward cycle, a stage characterized by steeper price gains and shorter periods of consolidation. This means that while Bitcoin’s ascent might accelerate, the opportunities for investors to accumulate at lower prices could diminish rapidly. Furthermore, he projected that if the anticipated rise materializes by the end of 2024 or the first quarter of 2025, it could draw significant new capital into the market. The inflow of additional funds is expected to fuel Bitcoin’s momentum, potentially driving the market to its peak during this cycle. Dan wrote: As the market moves towards the later stages of the cycle, the magnitude of the rise tends to be larger, and the periods of decline/adjustment are shorter. If a steep rise occurs as implied by this indicator within the end of 2024 to the first quarter of 2025, it can be expected that new inflows and additional funds will enter the market, bringing it to its peak. BTC Market Performance Meanwhile, Bitcoin continues to maintain stability above the $95,000 price mark. At the time of writing, the asset currently trades for $96,296, down by 1% in the past day but still up by nearly 40% in the past month. According to a renowned crypto analyst known as Ali on X, while some in the community expect a major retracement in Bitcoin’s price, BTC could do the opposite. The analyst projected BTC could surge to as high as $120,000-$150,000 before the first 30% price correction. Given the fact that #Bitcoin tends to do the opposite of what the crowd believes, there is potential for $BTC to go higher. If the current cycle behaves like the last two, #BTC could go to $120,000-$150,000 before the first 30% price correction. https://t.co/xTHJMITqJa — Ali (@ali_charts) December 2, 2024 Featured image created with DALL-E, Chart from TradingView