Bitcoin Facing Max Pain Correction, Says Blockchain Expert
The head of blockchain analytics platform CryptoQuant shares insights on potential Bitcoin correction and market dynamics. Ki Young Ju highlights key indicators pointing to a possible downturn in the crypto market.
Net Inflows to Spot Bitcoin ETFs Cool Off
Ju points out that net inflows to spot Bitcoin ETFs have slowed down, indicating a shift in market sentiment. Sellers might be gaining control as demand wanes in the current market conditions.
- Bitcoin spot ETF netflows are showing a decline.
- Demand could pick up if BTC reaches crucial support levels.
- New whales, particularly ETF buyers, have a $56,000 on-chain cost basis.
- Corrections in bull markets often see a 30% drawdown, with a potential max pain level at $51,000.
Miners and Large Holders Selling Aggressively
Data from CryptoQuant suggests that significant holders of BTC, including miners, are actively selling their holdings. This increased selling pressure could contribute to a more severe correction in the crypto market.
- Large Bitcoin holders and miners have intensified their selling activity.
- Shorter-term holders are capitalizing on profit margins, leading to increased selling pressure.
- This selling behavior among traders hasn’t been observed on this scale since May 2019.
Current Bitcoin Price Action
As of the latest update, Bitcoin is trading at $67,184, reflecting a 4% increase in the past 24 hours. The crypto market remains volatile, with potential for further price fluctuations based on the present market dynamics.
Conclusion
It is essential for crypto investors to stay informed about the latest market trends and indicators to make informed decisions. Be cautious about potential corrections and ensure you have a well-defined investment strategy to navigate the volatile crypto market.
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