After hitting the $100,000 milestone, Bitcoin suffered a sudden price crash on Friday resulting in an estimated price loss of 7%. During this decline, the asset’s perpetual funding rates in the derivative markets took a hit. However, traders may yet retain enough leverage to strongly influence price volatility. Related Reading: Bitcoin On Track To Replace Gold In 10 Years, Trading Firm Predicts Bitcoin Short-Term Outlook Uncertain Due To Heightened Leverage In an X post on December 6, blockchain analytics firm Glassnode expressed that Bitcoin’s perpetual funding rate may hold significant implications for the asset’s short-term price. For context, perpetual funding rates are periodic payments made between traders in the perpetual futures market to ensure the contract price aligns with the spot price of Bitcoin. Positive funding rates indicate that long positions are paying shorts, which is bullish while negative funding rates represent the vice versa. According to Glassnode, BTC’s perpetual funding rates initially showed signs of stabilization on its weekly frame amidst speculative demand. However, the asset’s surge to $100,000 on Thursday driven by increased market leverage saw these funding rates rise by 3.6x their weekly average. Notably, Bitcoin’s perpetual funding rate hit a peak of 0.062, representing its highest value since April. Importantly, the analytics team at Glassnode notes that this rate spike suggests significant influence by the derivative market on Bitcoin’s ascent above $100,000. However, Bitcoin’s flash price resulted in a major decline in its funding rates slightly above 0.024. Despite this fall, Glassnode states these rates are still relatively high compared to earlier this week, indicating the Bitcoin market still contains a significant level of leveraged positions. This residual leverage in the market indicates a strong potential for increased price volatility. Therefore, Bitcoin’s price movement in the coming days appears unclear as a reversal on either side could trigger a significant level of liquidation, inducing a cascading effect. Related Reading: Bitcoin Price At $100,000: Road To More Gains Or Potential Bull Trap? Analyst Has Answers STH Cost Basis Points To $112,000 Price Target In other news, renowned analyst Ali Martinez has posted a Bitcoin price prediction based on the asset’s short-term holder (STH) cost basis i.e. the average price at which those who typically acquired BTC over the last 155 days. It indicates a break-even level for these investors. According to Martinez, the STH behavior indicates that Bitcoin would reach a local top or $112,926 price based on a +1 standard deviation that adjusts the level of STH cost basis upward to account for price volatility and behavioral trends. At press time, Bitcoin trades at $100,137 after its recovery from Friday’s crash faced a rejection at $102,000. Meanwhile, the asset’s trading volume is down by 42.46% and valued at $89.12 billion. Featured image from TradeSanta, chart from Tradingview
A Bitcoin indicator created by the on-chain analytics firm Glassnode has just given a signal that could suggest the exhaustion of selling pressure in the market. Bitcoin Seller Exhaustion Has Just Registered A Spike In a new post on X, Glassnode has shared an update on the Seller Exhaustion Composite for the Weekly-Monthly Bitcoin traders. The “Seller Exhaustion Composite” here refers to an indicator that basically identifies whether selling on the network has reached a state of exhaustion or not. Related Reading: Bitcoin Sentiment Cools Down From Extreme Greed: Can Rally Restart Now? The metric bases itself on a few on-chain indicators, with perhaps the most notable being the Realized Loss, which measures the total amount of loss that the BTC investors are locking in. Historically, the cryptocurrency’s price has tended to form bottoms whenever holder capitulation has reached a high. In such loss-taking events, coins transfer from the weak hands to the resolute entities, so the risk of further selling reduces, allowing for the asset to find a rebound. In the context of the current topic, the Seller Exhaustion Composite of only the Weekly-Monthly BTC traders is of interest. These are the investors who purchased their coins between one day and one month ago. The reason Glassnode has picked this specific cohort is that there is a statistical relationship between holding time and the tendency to sell. The HODLers of the market carry their coins for long periods and, therefore, aren’t very likely to participate in selling at any point. The only times that these diamond hands are forced into capitulation are the major cyclical downturns. On the other hand, the investors who are relatively fresh buyers can be prone to panic selling, so loss taking from them can appear in all phases of the cycle, even the bull market. Now, here is the chart shared by the analytics firm that shows the trend in the Bitcoin Seller Exhaustion Composite for new buyers in the market: As displayed in the above graph, the Seller Exhaustion Composite has just flashed a signal for the Bitcoin Weekly-Monthly traders. “This reflects high locked-in losses from BTC traders active in the last month,” notes Glassnode. Related Reading: Current Bitcoin Hashrate Can Sustain $4.9 Trillion Cap, CryptoQuant CEO Reveals The latest round of capitulation from these recent buyers has come as the cryptocurrency’s price has seen a tumble after its all-time high (ATH) above the $99,000 level. From the chart, it’s visible that the instances of high loss taking from this cohort all coincided with some sort of bottom in the price during the past year. Given this pattern, it’s possible that Bitcoin may be able to find another bottom off the back of the capitulation this time as well. BTC Price Bitcoin had slipped all the way down towards $90,000 a couple of days back, but the coin seems to have made some recovery as it’s now floating around $95,400. Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Following the events of the past week, it is more of a matter of “when” rather than of “if” the Bitcoin price will hit a historic six-figure value. The crypto commentary channels and waves have been largely occupied with the premier cryptocurrency potentially reaching $100,000 over the last few weeks. A six-figure value for BTC […]
The Solana network remains one of the leading blockchains in the dynamic crypto sector, drawing in a significant number of users on a daily basis, which has led to a recent notable spike in its transfer volume to unprecedented levels. Solana Sets New Benchmark In Adoption Glassnode, a world-leading on-chain and financial platform, reported that the […]
Bitcoin (BTC) recently reached a new all-time high (ATH) of $93,477, as the leading digital asset inches closer to the highly anticipated $100,000 target. Notably, the ongoing price rally has seen relatively muted profit-taking, fueling hopes that BTC has further room to surge. Low Profit-Taking For Bitcoin In Current Cycle According to a recent report by Glassnode, the current BTC price momentum is primarily driven by strong spot demand and rising institutional interest. Particularly, the victory of Republican US presidential candidate Donald Trump has added optimism to the digital assets industry. Related Reading: Bitcoin Price Could Peak In 200 Days, Before US Recession In Mid-2025, Report Says The report highlights that over 95% of Bitcoin’s supply is currently in profit. However, despite the high proportion of profitable holders, profit-taking has remained relatively muted during this cycle. Historically, monthly profit realization has typically ranged between $30 and $50 billion during previous Bitcoin ATH cycles. The current price discovery phase has seen about $20.4 billion in realized profit. This relatively low profit-taking level in the current BTC ATH cycle suggests further room for the BTC price to rise, potentially reaching the $100,000 milestone before demand wanes. The chart below shows the cost basis of new BTC investors, along with upper and lower statistical bands. According to the report, during an ATH phase, BTC’s price repeatedly tests the upper bands as new investors enter the market at higher price points. As can be inferred from the above chart, BTC’s current spot price of $91,199 is just below its upper band of $94,900. Keeping track of price movement between these bands can show when the market price might be high enough to force existing holders to sell their holdings. Excess Leverage Must Be Flushed Before $100,000 BTC While BTC is trading less than 10% below the $100,000 level, industry experts opine that excess leverage must be flushed out before the top digital asset attempts to hit the 6-figure target. Related Reading: Bitcoin To $100,000 By February 2025? Analyst Explains Why Data from Coinglass shows that more than $718 million worth of crypto contracts were liquidated in the past 24 hours, impacting 202,074 traders. Notably, contract liquidations were split pretty evenly between longs and shorts – 49.93% vs 50.07%, respectively – indicating that despite the strong bullish sentiment, there is no clear trading advantage. Some industry leaders remain optimistic about BTC’s future price action. In October, the BTC mining firm CleanSpark CEO said that the premier digital asset may peak at $200,000 in the next 18 months. Similarly, BitMEX co-founder Arthur Hayes recently predicted that BTC may hit $1 million under the Trump administration. BTC trades at $91,199 at press time, up 3.9% in the past 24 hours. Featured image from Unsplash, Charts from Glassnode and TradingView.com
Since Bitcoin broke past its March high of $73,679, Bitcoiners have pulled $20.4 billion in realized profits, but Glassnode says “further gains” may lie ahead.
The Bitcoin price and the entire crypto market have been on a tear since the outcome of the United States elections was announced in the early hours of Wednesday, November 6. The premier cryptocurrency specifically has breached and printed new all-time high prices over the past few days. Interestingly, the price of BTC has shown no signs of weakness going into the weekend, with the market leader forging a new record high above $77,000 on Friday, November 8. While the hot streak of the Bitcoin price can be attributed to the latest victory of former president Donald Trump in the US, on-chain data suggests that this rally has been a long time coming. BTC’s Realized Cap Experiences Largest Increase In Two Years One of the latest on-chain metrics to offer an interesting insight into the meteoric rise of Bitcoin’s price is the realized cap indicator. In a November 8 post on the X platform, blockchain analytics firm Glassnode revealed that Bitcoin’s realized cap recently reached a new all-time high of $656 billion. Related Reading: Dogecoin Price Forecast: Analyst Says Downside Is Minimized As 1M, 3M, And 6M Candles Turn Bullish For clarity, the realized cap metric measured the value of each Bitcoin as at the last time they were transacted. This offers a more interesting way to evaluate the cost basis (the time in which the coins changed hands) as opposed to the regular market capitalization, which is derived by multiplying the total number of circulating coins by the current market price. Data from Glassnode shows that the Bitcoin realized cap witnessed a 3.8% upswing in the past 30 days, which represents one of the metric’s largest increases since January 2023. As shown in the chart below, this metric has been experiencing positive growth since the start of the year, as the 30-day net change has mostly been green. It is worth mentioning that the realized cap metric also represents the amount of capital flowing in and out of the flagship cryptocurrency. The latest increase reflects a net capital inflow of over $2.5 billion in the past month, suggesting the entry of new investors — both retail and institutional investors. With the realized cap and Bitcoin price consolidating over the past few months, a sudden increase of the former to $656 billion suggests that the premier cryptocurrency might be moving from the “reaccumulation” phase to a markup phase. Ultimately, a continuation of the capital inflow trend could sustain the increase in the Bitcoin price over the next couple of months. Bitcoin Price At A Glance As of this writing, the price of Bitcoin is valued at around $76,700, having lost its hold above the historical $77,000 level. According to CoinGecko data, the market leader is up by an impressive 10% in the past week. Related Reading: Ethereum Analyst Sees Altseason Potential As BTS Is Still Outpacing ETH – Time To Buy Altcoins? Featured image created by Dall.E, chart from TradingView
Bitcoin investors are presently displaying renewed enthusiasm towards the largest crypto asset as its net capital inflows have experienced a notable spike. This signals an increase in overall market appetite and has prompted speculations about potential rallies in the upcoming months. Bitcoin Capital Inflows Soars, Strong Demand Ahead? According to current reports from Glassnode, a […]
Spot Bitcoin ETF demand soars to a six-month high, but BTC futures contract volumes “remain somewhat subdued” and could be a reason why the price is constrained.
Given that the market has recently driven up the price of Bitcoin once again to the pivotal $65,000 level, traders and investors are currently seeing huge profits from their positions, especially holders of the crypto asset in the short term. Short-Term Bitcoin Holders In The Green A recent report from the world’s leading on-chain and […]
Bitcoin’s consolidation around $60,000 has investors sidelined, with a new price range needed to spark activity, according to an analyst.
Geopolitical tensions triggered consecutive daily declines of almost 4% in bitcoin’s price.
A crypto analyst has pinpointed the $66,000 mark as a crucial level for the Bitcoin price and its trajectory over the coming weeks. Bitcoin Price Needs To Climb Above $66,000 — Here’s Why Popular crypto pundit Ali Martinez took to the X platform to share an interesting on-chain observation for the price of Bitcoin. This on-chain revelation revolves around the warm supply realized price metric, which is derived from the average purchase price of Bitcoin that has been inactive for one to three months. Related Reading: ADA At A Crossroads: Approaching $0.3389 Support With Potential For A Deeper Decline As the name suggests, this realized price accounts for warm (relatively recent) supply metrics, as opposed to “hot” (very recent) or “cold” (old) market activity. This metric is especially relevant because it offers a psychological and technical reference point for investors. Typically, when the Bitcoin price is above the warm supply realized price, it means that the recent investors are in the green. On the other hand, the BTC price being below the warm supply realized price indicates that a significant percentage of recent investors are currently at a loss, which may potentiate selling pressure and result in a bearish trend. #Bitcoin above the warm supply realized price is a positive sign, while dropping below it may indicate the start of a longer bear market. Right now, this level is $66,000. If $BTC stays under it, bulls should proceed with caution! pic.twitter.com/QWzTquQ5Mh — Ali (@ali_charts) August 31, 2024 Data from Glassnode shows that the warm supply realized price is currently around $66,000. According to Martinez, bulls should approach the market with caution especially if the Bitcoin price continues to struggle beneath this level. This is because a sustained sub-$66,000 stay might be indicative of the start of a long-term bear phase, where prices could slip even lower as selling pressure increases. BTC Price Could Continue To Range Between $58,000 And $65,000 Interestingly, it appears that the premier cryptocurrency would still lag under the crucial $66,000 level for a while. According to analysts at QCP Capital, the Bitcoin price is likely to remain within the $58,000 and $65,000 consolidation range over the next few weeks. This projection comes as the Bitcoin market has become somewhat desensitized to the usual bullish triggers. The QCP analysts believe that the price of the flagship cryptocurrency will continue to consolidate until certain positive catalysts ignite the market. Related Reading: Bitcoin Set For Further Losses As Data Points To Stormy September – Details As of this writing, the Bitcoin price stands at around the $58,950 level, reflecting a mere 0.3% decline in the past 24 hours. According to data from CoinGecko, the market leader is down by more than 8% in the last week. Featured image from iStock, chart from TradingView
A crypto analyst says that we haven’t seen this altcoin season because traders keep buying memecoins too early.
The Bitcoin price performance has been uninspiring in the past week, mirroring the broader cryptocurrency market climate. However, the premier cryptocurrency seems to be ending the week on a high note following an unexpected Friday rally. The price of BTC appears to have received a breath of fresh air following Federal Reserve Chairman Jerome Powell’s Jackson Hole speech, finding its way above the $64,000 mark — again — with an almost 7% surge. The question now is — how far can the Bitcoin price climb? Here’s Why $66,250 Is A Crucial Level For BTC Prominent crypto analyst Ali Martinez took to the X platform to share an interesting prognosis for the Bitcoin price over the next few days. The relevant indicator here is the Glassnode “UTXO Realized Price Distribution” (URPD) metric, which monitors the amount of a particular cryptocurrency that was purchased at a given price level. Related Reading: Is A Bitcoin (BTC) Negative Correlation With Stocks A Bullish Signal? Analyst Reveals Typically, the likelihood for a price level to act as an on-chain support or resistance zone depends on the number of coins that have their cost basis at the specific level. For context, the cost basis of an investor refers to the original price (including the transaction fees) at which they acquired a coin or token. Price levels beneath the current spot value with substantial buying activity will likely act as support zones. On the other hand, levels above the current price could prove to be significant resistance areas. The chart below depicts the distribution of Bitcoin at different price levels surrounding the recent spot price of the coin. Based on data from the highlighted chart, $64,045 and $66,250 seem to be the next crucial resistance levels to watch. While it appears that the Bitcoin price has flipped the $64,045 resistance wall, the $66,250 zone remains to be breached. According to data from Glassnode, nearly 382,000 coins were moved within the $66,250 price area. The last time BTC climbed above the $66,250 level, it traveled as high as the $70,000 mark before it encountered some resistance. It would be interesting to see how far the price of the premier cryptocurrency would go this time, especially considering that there is no major resistance wall above the $66,250 area based on the URPD indicator. Bitcoin Price At A Glance As of this writing, the price of Bitcoin is around the $64,000 mark, reflecting an almost 7% increase in the past 24 hours. This single-day performance has also shown on the weekly timeframe, with the flagship cryptocurrency climbing by nearly 10% in the past week. Related Reading: Crypto Analyst Predicts 42,263% Breakout For XRP Price To $280, Here’s The Roadmap Featured image from iStock, chart from TradingView
The Bitcoin price began Friday, August 16 from beneath the $57,000 level, following a sudden 7% fall on Thursday. While the premier cryptocurrency is showing good signs of recovery, a prominent crypto analyst has explained how the latest price decline may have pushed the BTC price into a bearish phase. Bitcoin MVRV Drops Below 1-Year […]
Following a tumultuous start to the month, the cryptocurrency market has yet to shake off the early August blues. The story has not been very much different for the price of Bitcoin, which struggled to make an impact in the past week. With BTC’s price almost 20% adrift of its all-time high of $73.737, there have been increased calls for the premier cryptocurrency to return to the bull market. Interestingly, a recent on-chain observation shows that Bitcoin has witnessed substantial bearish pressure in the past two years. Bitcoin Spot CVD Persists In The Negative — What Does This Mean? In a recent post on the X platform, blockchain data company Glassnode revealed that the Bitcoin spot market has been experiencing a net-sell side bias over the past two years. This on-chain observation is based on the Spot Cumulative Volume Delta (CVD) indicator, which measures the net difference between buying and selling trade volumes. Related Reading: MATIC Set For Rebranding In Early September: Will Polygon Prices Recover After Sinking 65%? The Spot CVD metric is used by investors to assess the current market sentiment. It offers detailed insight into whether the bulls or bears are the dominant market participants. Typically, a positive Cumulative Volume Delta value implies more buying pressure in the market, while a negative value suggests that the sellers are in control. According to the latest data from Glassnode, the yearly median CVD value has been bouncing between -$22 million and -$50 million over the past two years. This trend suggests a net sell-side bias, with selling volume overshadowing buying volume in the spot market for some time now. While the persistence of a net-sell side bias suggests investors offloading their coins rather than accumulating, it does not necessarily imply a bearish condition for the Bitcoin market. It rather spotlights a cautious approach by the investors, with an overall decline in spot demand of BTC. Although it is difficult to say how the spot Cumulative Volume Delta will shift over the coming months, the metric is one that investors should look out for. This is especially relevant because a return of CVD to positive values could signal an increase in Bitcoin spot market demand, which could be favorable for the Bitcoin price. BTC Price At A Glance As of this writing, the price of Bitcoin is slightly above the $59,000 mark, having increased by more than 2.5% in the past 24 hours. This recent momentum, though, is not enough to wipe off the coin’s loss on the weekly timeframe. According to data from CoinGecko, the Bitcoin price is down by more than 2% in the past week. Related Reading: Cardano Sees Massive 150% Volume Surge, Yet ADA Price Stalls With 4% Decline Featured image from iStock, chart from TradingView
The popular Bitcoin valuation metric hasn’t been at this level since the downfall of cryptocurrency exchange FTX in November 2022.
Bitcoin price has rallied above the $64,000 mark. Glassnode, a market intelligence platform, has analyzed this notable increase, which attributes the current price movement to a significant easing of sell-side pressure, particularly from the German government. Exhaustion of Sell-Side Pressure According to the on-chain data provided by Glassnode, the recent uptick in Bitcoin’s price is largely due to what they describe as the “complete exhaustion” of sell-side forces, particularly those stemming from the recent governmental actions. Over the past weeks, the German government has been a big seller, selling off tonnes of Bitcoin, leading to an earlier price decrease at below $54,000. Related Reading: Institutions Grab Over $5 Billion Bitcoin in a Week: Are They Predicting a Mega Rally? Nevertheless, despite these sales, the market has not moved lower than that mark, suggesting that this selling was anticipated and factored into prices by the markets. Glassnode’s report highlights that from July 7 to July 10, approximately 39,800 BTC flowed out of labeled wallets, marking a critical phase of market absorption. Also contributing to the price surge, as highlighted by Glassnode are inflows into Bitcoin exchange-traded funds (ETFs), which have garnered renewed investor attention in recent weeks. Over the last week, ETFs have reported over $1 billion in inflows, suggesting a renewed confidence in Bitcoin among institutional investors. Glassnode noted in the report: As prices sold off towards the $54k low, they dropped below the average inflow cost basis of ETF holders, which is currently at $58.2k. In response, the ETFs have seen their first significant tranche of positive interest since early June, with over $1B in total inflows last week alone. Furthermore, the decline in exchange flows – deposits and withdrawals – remains a significant sign of waning sell-side pressure. Lower exchange flows generally indicate reduced market liquidity and selling, which can provide price support or an upward momentum. Current exchange volumes have cooled off at about $1.5 billion daily, unlike the higher marks seen in March. Related Reading: Bitcoin Bullish Signal: NVT Golden Cross Suggests BTC Oversold Major Rally for Bitcoin On The Horizon? As Bitcoin maintains its position above $64,000, showing an 11.5% increase over the past week, the market appears increasingly bullish. Insights from prominent crypto analyst Rekt Capital indicates that overcoming $65,000 might see Bitcoin enter a new high price cluster zone – one that can push BTC towards as much as $71,500. #BTC The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/yxOhRsmVU9 pic.twitter.com/TZMP37ufjx — Rekt Capital (@rektcapital) July 16, 2024 Additionally, whale activity continues to demonstrate confidence in Bitcoin’s long-term value. Recent transactions highlighted by Lookonchain, such as a notable whale purchasing 245 BTC for nearly $16 million, underscore the strategic accumulation amidst this rally. Featured image created with DALL-E, Chart from TradingView
Bitcoin price displayed surprising strength after various market participants absorbed over 48,000 BTC that the German government sold.
Glassnode has discussed in a new report the reasons behind Bitcoin moving sideways despite inflows into the spot exchange-traded funds (ETFs). Why Bitcoin Has Been Stagnant Despite Spot ETF Inflows In its latest weekly report, the analytics firm Glassnode has talked about how the impressive inflows into the US spot ETFs have failed to make the price break its sideways trend. The spot ETFs, which the US Securities and Exchange Commission (SEC) approved in January of this year, have provided investors with an alternate means of gaining exposure to the cryptocurrency. Related Reading: Is Bitcoin Overheated Right Now? This Metric Suggests No These funds buy and hold Bitcoin on behalf of their users, letting them get indirect exposure to the coin’s price movements without having to own the asset itself. The more traditional investors, who don’t want to attempt to navigate cryptocurrency exchanges and wallets, have found the spot ETFs to be a comfortable investment option. Since their launch, the spot ETFs have brought large demand for the asset. Initially, these fresh capital inflows helped BTC rise to a new all-time high (ATH), but recently, the asset has been consolidated. Below is a chart that shows how the combined reserve of these funds compares against the other large entities in the sector. From the graph, it’s visible that the spot ETFs hold 862,000 BTC. This is more than what the miners (excluding Patoshi) hold (706,000 BTC) but notably less than the reserve of the centralized exchanges (2.3 million BTC). Glassnode has noted that the cryptocurrency exchange Coinbase alone holds a big part of the total exchange reserve and the US spot ETF balance through its custody service. “With Coinbase serving both ETF clients and conventional on-chain asset holders, the gravity of the exchange in the market pricing process has become significant,” reads the report. The data for the whale deposits to the platform reveal a rising trend until mid-April. According to the analytics firm, a significant portion of these whale deposits had come from the Grayscale Bitcoin Trust (GBTC), adding to the selling pressure in the market. The whale exchange inflows shooting up may partly explain why the spot ETFs haven’t proven as effective. Another factor behind the consolidation can be the trend in the futures market. The chart below shows that the CME’s future open interest has recently been at high levels. The report thinks this could signal that an increasing number of traders have been adopting a cash-and-carry arbitrage strategy. This arbitrage involves a market-neutral position, coupling the purchase of a long spot position, and the sale (short) of a position in a futures contract of the same underlying asset which is trading at a premium. Related Reading: Litecoin In Uphill Battle: Strong Resistance Might Block Recovery This could explain why the spot ETF inflows have only been able to have a neutral impact on the prices in the Bitcoin market recently. BTC Price Bitcoin has swiftly recovered more than 4% in the past 24 hours as its price is now back above $69,700. Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Long-term Bitcoin holders are now all in the green, thanks to BTC’s recent climb above November 2021’s all-time high.
The price of Bitcoin appears to have returned to a choppy market condition, quashing any hopes of a breakout to new highs soon. However, the good news is that the current bull cycle may still not be over, even though it is taking a while for the premier cryptocurrency to resume its upward momentum. Specifically, the latest on-chain observation shows that Bitcoin has been going through a “euphoria wave” over the past few months. Here’s the implication of this phase on the current bull run. How Old Is The Current Bitcoin ‘Euphoria Wave’? Blockchain intelligence firm Glassnode revealed via a post on the X platform that Bitcoin has entered the euphoria phase of the market cycle. This on-chain observation is based on the “Percent Supply in Profit” metric, which measures the percentage of the total circulating Bitcoin supply that is currently in profit. Related Reading: Can BONK Break The Mold? Analyst Predicts Stellar Rise For The Solana Memecoin According to Glassnode, the “Euphoria Wave” is identified as a period during which the supply in profit usually fluctuates around the 90% level. This phase typically lasts between 6 to 12 months and is characterized by increased investor sentiment and heightened market speculation. Glassnode’s data shows that 93.4% of the circulating Bitcoin supply is currently in the green and that the Euphoria Wave is “relatively young”. The on-chain analytics platform noted that the euphoria phase has only been active for about two and a half months. As with every phase in the market cycle, the Euphoria Wave will eventually come to an end at some point. Historically, the euphoria phase can signal tops and is usually followed by a cooling-off period, which is marked by a downturn in the price of Bitcoin. If the last cycle – with a 6-month Euphoria Wave – is anything to go by, then there might still be about three to four months in the current bull run. Ultimately, the current profitability of the premier cryptocurrency may prove pivotal in the duration of its bull cycle and overall future trajectory. Rise Of BTC Accumulation Addresses Continued In May: Analyst One of the tell-tale signs of the bullish sentiment around Bitcoin is the continuous rise in accumulation addresses. According to an on-chain analyst on CryptoQuant’s platform, there has been a notable increase in the number of new BTC accumulation addresses. The analyst pointed out the continuity of this positive trend despite BTC’s relatively slow price action in May. Meanwhile, the large Bitcoin holders have also continued to load their bags, with significant purchases recorded over the past month. Related Reading: Dogecoin Whales Buy $112 Million Worth Of DOGE As Crypto Investors Turn Their Attention To Meme Coins As of this writing, Bitcoin is valued at $67,744, reflecting a mere 0.4% increase in the last 24 hours. According to data from CoinGecko, the pioneer cryptocurrency is up by about 15% in the past month. Featured image from iStock, chart from TradingView
Amid turbulence surrounding the crypto market, popular founder and Chief Executive Officer (CEO) of Into The Cryptoverse Benjamin Cowen has taken the spotlight to shed his insights on the recent downtrend observed in the Ethereum/Bitcoin (ETH/BTC) pair. Cowen’s views examine the complex relationship between Ethereum and Bitcoin pricing and the potential for further downside risk. According to Benjamin Cowen, the ETH/BTC pair is currently on the downside, and the last 2 times that the pair declined, ETHUSD witnessed a steep decline of around 70%. Given that the crypto community has been eagerly anticipating an Altcoin season for the past 2.5 years, Cowen thinks it is crucial to warn the community that there is still a possibility of a downward movement. ETH/BTC Pair Rejected By The Bull Market Band Cowen has also confirmed that ETH/BTC is presently being rejected by the bull market support band, which he previously predicted days back due to a price pump. “I would expect it (ETH/BTC) to be rejected by the bull market support band, at least when looking at weekly closes ($0.053-$0.054),” he stated. He further noted that the pump appears to be mirroring the last cycle of rate cuts right before summer capitulation. Related Reading: Cracking the Crypto Code: ETH/BTC Signals The Next Altcoin Explosion – Here’s How Following the launch of Bitcoin Spot Exchange-Traded Funds (ETFs), Cowen mentioned that ETH/BTC saw a sharp rally. The analyst affirms that the rally was probably similar to the trend of the previous bull cycle, ushering in new lows. Furthermore, Cowen stated that there has been an unquestionable macro downtrend since November 2021, particularly following the merger of the ETH/BTC pair. However, it is also evident that the market did not decrease abruptly. As a result, investors held ETH instead of BTC all the way down from 0.085 to 0.048 because of the multiple lower highs, giving the impression that it was holding up quite well. Prior to the Bitcoin Halving, Cowen predicted that the bull market support band would reject ETH/BTC, at least when considering weekly closes ($0.053-$0.054), should there be a rebound after the Halving, similar to that witnessed with BTC spot ETF launch. Regardless of what occurs, the expert is confident that ETH/BTC will reach between $0.03 and $0.04 by this summer. Heightened Divergence Between Ethereum And Bitcoin Being the two leading cryptocurrency assets, there is great interest surrounding Ethereum and Bitcoin. However, on-chain analytics firm Glassnode has highlighted a shift in performance between both digital assets. Related Reading: Ethereum Trouncing Bitcoin, ETH/BTC Ratio Bouncing Higher: Will This Trend Continue? According to the firm, the performance of Ethereum and Bitcoin has been increasingly diverging so far in the 2023–2024 cycle. This is due to poorer performance in ETH price, which is explained by a generally weaker trend in capital rotation. In addition, this is evident when particularly compared to preceding cycles and all-time highs. Featured image from iStock, chart from Tradingview.com
The Bitcoin price has somewhat slowed down since reaching the unprecedented high of $73,000, moving mostly sideways since mid-March. However, with the halving event less than a fortnight away, all eyes will be on the premier cryptocurrency and all that pertains to it over the next couple of weeks. According to a recent on-chain observation, the BTC supply on exchanges has been on a steady decline over the past few months. This trend has sparked discussions on what this could mean for the Bitcoin price, both in the short and long term. $7.55 Billion Transferred Out Of Exchange Wallets In The Past Month Prominent crypto pundit Ali Martinez took to the X platform to share that a significant amount of Bitcoin has been moved out of crypto exchanges over the past month. The relevant metric here is Glassnode’s Balance on Exchanges, which tracks the total amount of a cryptocurrency (Bitcoin, in this case) held across all exchange addresses. Related Reading: Bitcoin Short-Term Holders Go On 1.2 Million BTC Buying Spree, Is Retail Finally Here? A decrease in the value of this indicator implies that investors are making more withdrawals than deposits of Bitcoin into centralized exchanges. The metric’s increase, on the other hand, indicates that more BTC is flowing into these exchanges than leaving. Chart showing Bitcoin balance on all exchanges | Source: Ali_charts/X According to Martinez, about 111,000 BTC (worth approximately $7.55 billion) have been transferred out of known crypto exchange wallets in the past month. Typically, an exodus of funds (of this magnitude) suggests a significant shift in the sentiment of Bitcoin investors. While the exact rationale behind such a massive movement of Bitcoin remains unclear, the flow of funds from trading platforms suggests a growth in investor confidence. This implies that BTC owners are more interested in holding their assets in the long term rather than selling for short-term gains. Furthermore, this continuous downward trend in BTC’s balance on exchanges could set the stage for a bullish rally for the Bitcoin price. A sustained drop in the BTC’s supply on centralized exchanges could result in a supply crunch – a scenario where the supply of a particular asset is lower than its demand, leading to a surge in its value. Another potential bullish catalyst for the Bitcoin price is the upcoming halving event, which is expected to occur on April 18, 2024. With the miners’ rewards slashed in half and the production of Bitcoin slowed, this event is expected to impact the value of BTC positively. Bitcoin Price At A Glance As of this writing, the Bitcoin price stands at around $69,537, reflecting a 2.7% increase in the last 24 hours. Related Reading: Breakout Of The Year? Crypto Analyst Predicts Where NEAR Is Headed Next Bitcoin price on the verge of $70,000 on the daily timeframe | Source: BTCUSDT chart on TradingView Featured image from iStock, chart from TradingView
Data from the on-chain analytics firm Glassnode has revealed that around 9.5% of the Bitcoin supply changed hands above the $60,000 level. 1.87 Million Bitcoin Was Acquired At Price Levels Higher Than $60,000 In its latest weekly report, Glassnode has shared how the supply distribution of Bitcoin looks in terms of which levels the investors […]
According to on-chain data analysis by Glassnode, Bitcoin is at a critical juncture. When BTC soared to $73,800 in March 2024, printing new all-time highs, the Bitcoin market reached a statistically significant level regarding on-chain unrealized profits, according to the Market Value to Realized Value (MVRV) ratio. Bitcoin MVRV Ratio At Historically Significant Level: Time […]