Bitcoin Bulls and Bears In Tight Fight
A renowned crypto analyst, CrediBULL crypto, has observed an interesting dynamic in the Bitcoin market. It appears that there is an ongoing battle between spot buyers and passive sellers, which is affecting the price of Bitcoin.
CrediBULL crypto’s analysis reveals that there has been a significant increase in spot bids, with approximately $700 million worth of Bitcoin purchased within a narrow price range. Despite this aggressive buying activity, the price of Bitcoin has struggled to make significant upward progress, as passive sellers are currently limiting its growth.
The key question now is which side will exhaust their resources first: the passive sellers or the active buyers? CrediBULL crypto suggests that the current market dynamics primarily involve spot buyers and sellers, while leveraged traders are mostly on the sidelines.
Furthermore, the funding rates in the market are relatively low, indicating a healthy trading environment. CrediBULL crypto is optimistic about the potential for a substantial upside move if active buying pressure persists and overwhelms passive sellers. It’s worth noting that Bitcoin ETFs have seen strong buying, with BlackRock’s IBIT reaching new highs with $12 billion in holdings.
However, even if sellers maintain control, any potential dip in the market is expected to be limited. The lack of open interest in the market means that significant downside liquidations are less likely to occur.
Bitcoin Growth Cycle Can End in 150 Days
CryptoQuant, an on-chain platform, provides insights into Bitcoin trends using the Adjusted Output Profit Ratio (aSOPR) metric. This metric measures the ratio of spent outputs (those existing for more than an hour) in profit at a specific time window.
If the value of aSOPR is above ‘1’, it suggests that more investors are selling their assets at a profit. Conversely, values below ‘1’ indicate that more investors are selling at a loss.
Based on historical data, CryptoQuant notes that growth phases in the Bitcoin market typically last between 83 to 387 days. Taking the midpoint of this range, the average duration is approximately 235 days. Currently, the ongoing growth period has lasted 138 days, indicating that the Bitcoin growth cycle might conclude within the next 100-150 days.
Some market analysts predict that once the Bitcoin growth cycle comes to an end, altcoins will take the lead in the broader market rally.
Conclusion: Bitcoin’s Rally Continues
As the Bitcoin price hits its new all-time high of $70,000 on Friday, the biggest question in the investor community is whether this rally will continue. At present, BTC is experiencing a partial retracement and is currently trading at $68,423 with a market cap of $1.325 trillion.
CrediBULL crypto highlights the ongoing battle between spot buyers and passive sellers in the Bitcoin market. Despite aggressive buying activity, passive sellers are currently capping the price. The key question is which side will exhaust their resources first: the passive sellers or the active buyers.
CryptoQuant’s analysis using the aSOPR metric suggests that the current Bitcoin growth cycle might end within the next 100-150 days. This could potentially lead to altcoins taking over as leaders in the broader market rally.
Hot Take: Will Bitcoin’s Rally Continue?
With Bitcoin reaching new all-time highs and facing partial retracement, it’s natural for investors to wonder if this rally will continue. As of now, BTC is trading at $68,423 with a market cap of $1.325 trillion.
According to CrediBULL crypto, the ongoing battle between spot buyers and passive sellers is affecting the price of Bitcoin. While aggressive buying activity has been observed, passive sellers are currently limiting its growth. The key question is which side will exhaust their resources first: the passive sellers or the active buyers?
CryptoQuant’s analysis using the aSOPR metric suggests that the current Bitcoin growth cycle might conclude within the next 100-150 days. This could potentially pave the way for altcoins to lead the next leg of the broader market rally.
As an investor, it’s crucial to stay informed about these market dynamics and make well-informed decisions based on your risk tolerance and investment goals. Keep a close eye on Bitcoin’s price movements and monitor any developments that may impact its future trajectory.
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