Bitcoin has gained over 10% this week. reclaimed the $60,000 price mark On Friday. After a firstly negative performance by the market leader in September, investors have been overwhelmingly positive about this latest price increase. Cryptoquant analyst CRYPTOHELL, who goes by the name CRYPTOHELL, reports this bullish trend is under threat from opposite forces that are driving the BTC to a fork in the road.
Bitcoin Market Forces At A Standstill – What Next?
It is not a Quicktake post CRYPTOHELL, a Bitcoin-related company, stated on Saturday that current market conditions are both encouraging and warning.
The crypto analyst has noted that the number of bitcoins traded in the past year is down. BTC exchange reserves Investors are opting to keep their investments in the hope of an eventual price increase. A strong demand among US investors, evident in the ETFs for Bitcoin Spot and in metrics such the Coinbase Premium Index, further strengthens this bullish sentiment.
CRYPTOHELL also warns that certain market trends may force investors to exercise caution.
The analyst first highlights the fact that the net flows of Bitcoin have been higher than average over the past 7 days. This may be indicative of a significant amount of selling pressure. The Adjusted Spend Output Profit ratio (aSOPR), which is an important metric to assess market sentiment, shows a modest amount of profit realized by investors. This indicates that Bitcoin has been under pressure.
This bearish mood is also exacerbated by negative funding rates on the derivatives markets, which encourages traders to take leveraged short positions anticipating a drop in price.
BTC has been pushed into turmoil by the simultaneous presence of both bullish and bearish forces. “an anxiety phase” Most investors remain uncertain of the digital asset. The bullish forces are able to take advantage of the fact that long-term investment is still mostly dormant.
CRYPTOHELL concludes that the Bitcoin market has reached a critical point. “decision point”Technical indicators will also be neutral. Future price movements could potentially be affected by major changes in sentiment on the market and news that is important, for example, in regards to adoption or regulation.
BTC Leverage ratio reaches new year’s high
Ali Martinez is a cryptocurrency analyst. has reported This is a sign that Bitcoin traders are taking more risks as they open up new positions with borrowed funds. Bitcoin traders take on more risk as they increase the number of positions that are opened with borrowed money. Leveraging can increase gains, but it can also cause significant losses that can result in large liquidations. BTC traders should be more cautious.
Bitcoin currently trades for $60,220 after a decline of 0.23% in the previous day. Bitcoin trading volume has dropped by 51.83 percent and is now worth $15.74 Billion.
Other Readings Bitcoin Price Recovery Hinges On This Key Market Indicator, Reveals Analyst
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Source: www.newsbtc.com