Here are the reasons it wouldn’t matter this time around

In 2017, the price of Bitcoin (BTC) reached $ 20,000 before falling rapidly. Now, according to researchers von, the same bullish signal has reappeared in the chain Glass knot. But in addition to the much stronger bases this time around, The current rally feels significantly different for other reasons.

Bitcoin usually pulls back when whales make a profitThis leads to a domino effect across the entire cryptocurrency market. As, When the vast majority of the market is profitable, the chances of getting corrected increase.

Bitcoin’s UTXO profit percentage. Source: Glassnode

98% of all Bitcoin addresses are now profitable

Since the collapse in March 2020 when the price of Bitcoin fell below $ 3,600 on BitMEX, BTC has rebounded 260%. After such a big rally A consolidation phase or a pullback could lead to a healthier recovery in the medium term.

Here are the reasons it wouldn’t matter this time around
Here are the reasons it wouldn’t matter this time around

Glassnode researchers found that 98% of all Bitcoin UTXOs were last profitable in December 2017. After peaking at $ 19,798 on December 16, 2017, Bitcoin fell 45% to $ 10,961 in six days.

Bitcoin weekly price chart as of 2017. Source:

At that time, many whales and private investors were making a profit, which led to massive volatility. Glass knot He said::

β€œ98% of all # Bitcoin UTXOs are currently in a profit status. A level that has not been reached since December 2017 and is typical of previous BTC bull markets. “

However, There are several fundamental and technical differences between the current rally and the 2017 high.

First, Bitcoin’s current rally has been much more stable than the parabolic rally of 2017which appeared so suddenly that no clear levels of support and resistance were noted.

This time around, Bitcoin has grown steadily, confirming $ 10,500, 11,300, 12,000 and 12,500 as key levels of support.

Secondly, The institutional and general demand for spots is highin terms of the volume that comes from the derivatives market.

Following the top-class tasks of square, MicroStrategy Y. Stone comb in bitcoin, The volume of institution-centric platforms increased. LMAX Digital, CME and Bakkt have seen significant increases in trading activity since August.

The OTC volume is also increasing

When miners, whales, and high net worth individuals buy and sell Bitcoin, they generally rely on the over-the-counter market.

The OTC market makes it possible to offset large trades with minimal slippage, which could otherwise lead to massive price fluctuations on the exchanges.

The steady rise in OTC deals suggests that the appetite of major investors and institutions for BTC is likely to increase.. Analysts for data chain providers CryptoQuant they said::

β€œTo see how many OTC trades are being executed, you should look at the cash flow index. The 30-day moving average is at its 2-year low. Big purses move from the exchanges. The PayPal messages might just be the beginning. “

The combination of high volume, stable uptrend and increasing OTC volume makes it more likely that there will be new entries into the Bitcoin market. If the trend continues, possible setbacks in profit taking in the cryptocurrency market can be offset.

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