Bitcoin’s Price Recovery Signals Bullish Momentum :chart_with_upwards_trend:
If you’ve been following Bitcoin’s price movements, you would have noticed the recent surge to $67,500 after a 22% correction. Last week, the focus was on the $60,000 price level, but now there’s more to analyze. Let’s delve into the technical outlook and on-chain data to make informed decisions about your crypto investments.
Delving Into Bitcoin’s On-Chain Data :bar_chart:
– Realized capitalization (realized cap) reveals the total value of all circulating Bitcoins based on their last purchase or movement prices.
– It’s like summing up the acquisition prices of all held Bitcoins.
– This metric reflects the invested money in Bitcoin, considering the historical prices of the acquired coins.
– Different Bitcoin address cohorts are analyzed over time:
– New Whales: Addresses with over 1,000 BTC and an average coin age of less than 6 months.
– Old Whales: Addresses holding over 1,000 BTC with an average coin age surpassing 6 months.
– Addresses (Balance > 10K): Addresses with more than 10,000 BTC.
The realized capitalization for new whales has been steadily rising since January, indicating active accumulation by new significant investors. On the other hand, old whales’ realized cap remains stable, signifying long-term holding.
There’s a gradual growth in the realized cap for addresses with over 10,000 BTC, implying even the largest holders are slowly accumulating more Bitcoin. This suggests a positive sentiment among major investors.
Understanding Unrealized PnL Patterns :chart_with_trend:
– Unrealized profit and loss depict the potential gains or losses if Bitcoin holders were to sell at the current market price.
– Different cohorts analyzed include new whales, old whales, and massive holders with balances exceeding 10,000 BTC.
– Unrealized profit has been consistently increasing this year, peaking in mid-March, suggesting significant potential gains for large holders.
– New whales display more volatility in profit levels compared to old whales and major holders. However, they remain profitable amidst market fluctuations.
Strategic Insights and Price Prediction :moneybag:
– **Bullish to Neutral:** On-chain data indicates active accumulation by new whales and strong holding behavior by old whales with substantial unrealized profits, signaling a bullish market sentiment.
– **Price Target:** Considering current trends and accumulation patterns, it’s advisable to hold BTC positions until the price hits $73,000, aligning with bullish momentum and historical major holders’ behavior.
– **Exit Strategy (Daily Ichimoku Cloud):** To safeguard your investments, set a clear exit plan. If the price dips into the Ichimoku cloud on the daily chart, consider an immediate exit to mitigate potential losses and protect your capital during market downturns.
By
By
By
By
By
By