Bitcoin has gained over 10% this week. reclaimed the $60,000 price mark This Friday. After a firstly negative performance by the market leader in September, investors have been sparked with positive emotions following this price increase. Cryptoquant analyst CRYPTOHELL, who goes by the name CRYPTOHELL, reports this bullish trend is under threat from opposite forces that are driving the BTC to a fork in the road.
Bitcoin Market Forces At A Standstill – What Next?
It is a Quicktake post CRYPTOHELL said on Saturday that there are both positive and negative signals in the Bitcoin market.
Crypto analyst points out that on the plus side, there is a decline in BTC exchange reserves This indicates a reduced selling pressure as investors continue to hold their positions in anticipation of future gains. The strong demand by US investors is a further indication of this bullish mood, as can be seen from the high demand for Bitcoin spot ETFs as well as metrics like the Coinbase Premium Index.
CRYPTOHELL also warns that certain market trends may force investors to exercise caution.
First, the analyst points out that Bitcoin exchange netflows are higher than the average for the last seven days. This could indicate a strong selling pressure. Additionally, according to the adjusted Spent Output profit ratio (aSOPR), an important market metric used for assessing sentiment, there has been a moderate level of profits realized by investors. This suggests that Bitcoin is under pressure.
This bearish mood is also bolstered because of the negative funding rate in the derivatives markets, which leads to many traders taking short leveraged positions anticipating a drop in price.
These bullish and negative factors have pushed BTC into a downward spiral. “an anxiety phase” Most investors remain uncertain of the digital asset. The bullish forces are able to take advantage of the fact that long-term investment is still mostly dormant.
CRYPTOHELL concludes that the Bitcoin market has reached a critical point. “decision point”The technical indicators are also neutral, so future movements in prices will likely be influenced by changes in the market’s sentiment, as well as important news, such as adoption or regulation.
BTC Leverage ratio reaches new year’s high
Ali Martinez is a cryptocurrency analyst. has reported The total leverage ratio for Bitcoin has reached a record high. Bitcoin traders take on more risk as they increase the number of positions that are opened with borrowed money. Leveraging can increase gains, but it can also cause significant losses that can result in large liquidations. BTC traders should be more cautious.
Bitcoin is currently trading at $60,220, with a 0.23 % decline over the past day. Bitcoin’s volume of trading is valued at $15.74 billion, a drop of 51.83%.
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Source: www.newsbtc.com
