Metrics that reflect market confidence

Julián García, Data Science at Quantia Capital, shared his analysis of Bitcóin metrics and network for Cointelegraph en Español, which he believed show confidence in the market.

Garcia points out that it is common knowledge that confidence in the markets is cyclical to sell their stocks. â ???? Market participants currently have great confidence in them with the intention of holding long-term positions. ” pointed out.

According to Garcia, the sales volume of bitcoins bought more than a year ago is low. In his opinion, this situation means that long-term investors maintain a confident attitude and do not sell their holdings.

Metrics that reflect market confidence
Metrics that reflect market confidence

On the other hand, it also suggests that the amount of bitcoins purchased less than six months ago has minimum values. This means that most investors keep bitcoins that were bought more than six months ago in their portfolio, which means a gain in confidence and want to hold positions. he commented.

Bitcoin inflows and outflows to and from exchanges

A large outflow of bitcoins can be observed from the exchanges into the wallets of investors, so it can be concluded that they have no intention of conducting short-term operations and choose to store their bitcoins in cold wallets. in which they cannot be sold.â ???? said Garcia.

Regarding the average value of bitcoins sold on any given day, in relation to the price at which they were bought, Garcia affirms that the sale today would not generate significant profits for the average investor and that the price would come sooner Expected to Rise More Investors want to sell their holdings to get better returns as analysis shows that this indicator is always facing a big drop at highs, as it did in December 2017 when the price fell more than 80%, until they found their apartment, or even in June 2019, when the price fell by more than 70%, and last May 2021, when the price corrected itself by more than 50%. commented Garcia.

García also pointed out that the analyzes show that the number of new addresses is increasing, which he said would indicate that there would be many new investors who continue to trust the world of cryptocurrencies. â ???? As a final conclusion, it can be said that the current market is in a moment of confidence when most investors want to hold positions that are thinking about a different time horizon, at least until the price rises enough that they can get better returns. â ???? he commented.

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