Bitcoin bounced back on March 20, after capitulating March 19. Willy Woo an on-chain expert, however, believes that the crypto community is expecting more rapid growth, above all the highs around $73,800. thinks In the coming days, the coins will most likely continue to increase in value.
The SOPR peaked at an uncharacteristically high level: Profit-taking?
Woo, referring to X in particular, listed several metrics on the chain, of which some, although supporting prices, could be countered with others, that may slow down any upward trend. On the first line, Woo notes the printed Spent Output profit Ratio.
It is used as a tool to determine the profitability of Bitcoin transaction. If it does, then it means that there are more BTc moving around. This reading is up in recent weeks but how it reached its peak should be a cause for concern.
According to Woo, profit-taking is possible since SOPR reached an uncharacteristically high peak. “high level.” As a result, holders will exit, resulting in immediate sales, causing a possible sideways consolidation.
The analyst does find some reasons for optimism. The analyst found that the fall in the last few months from the swing peak, around $73,800 was about 20%. This decline is more severe when compared with historical cycles.
According to the analyst, it has dropped over 30% since last year before halfing in 2020.
The analyst also views the recent rise in “Macro risk signal,” As a sign of positive inflows, a measure that measures the price of risky assets such as Bitcoin and cryptocurrency. Although it’s rising and bullish it could still be a sign of a downturn. “freak out” Before prices reach new highs, investors should take a few risks.
Bitcoins will consolidate, but what about altcoins?
Altcoins may also be affected by what’s happening with Bitcoin. The analyst believes that altcoins could pump up as Bitcoin consolidates itself in a bullish technical structure.
Woo says that even though the leverage ratios for perpetual swaps bets are not reset, traders still need to take care because they will be dealing with volatility.
Woo predicts that there could be choppy prices in April. However, traders remain bullish. Halving could be driving prices up in the next sessions, given the recent surge of institutional demand.
BTC bulls currently have recouped losses of 19 March. The price of the coin has risen above its 20-day moving mean. The short-to-medium-term goal for optimistic traders is $73,800.
Chart from TradingView, Featured image by DALLE
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