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Bitcoin (BTC), which briefly dropped to $98,000 at the weekend, has now recovered. It is currently trading over $101,000. Although concerns over a possible double top remain, the on-chain has not shown any significant warning signs.
Bitcoin Consolidation is Healthy
CryptoQuant Quicktake, a post from a contributing contributor. Avocado_onchainBTC, in spite of the general market’s turn to bearishness, has yet to show any red flags. The cryptocurrency appears to still be in a phase of consolidation.
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The 30-day moving-average (MA) for Binary Coin Days Destroyed indicates that BTC holders who have been holding their BTC long term are not selling. The 30-day moving average (MA) of Binary Coin Days Destroyed (CDD) indicates that long-term holders are continuing to hold onto their BTC rather than selling.
Uninitiated users can use the 30-day MA Binary CDD to smooth out the daily fluctuations and see how many times long-term Bitcoin owners are moving coins in a given month. The lower the value, the stronger your holding and accumulation. A higher value could indicate that experienced investors are selling their coins.
In a prior analysis, the analyst had noted that a sharp correction usually followed when Bitcoin’s Binary CDD surpassed 0.8. However, this time, the indicator has peaked around 0.6 and is now on the decline – suggesting the market is far from overheating. The authors added that:
This moderation is still indicative of a market entering a period of consolidation. Further price corrections or changes in time could be forthcoming.
This indicator, according to the analyst, does not indicate the end of a bull run. Rather – similar to the previous two market phases – Bitcoin could be following a “staircase-like movement,” Where periods of consolidation is followed by an upwards leg.
The study concluded that BTC has historically rallied when attention on the market waned and sentiment remained calm. The current low-volatility period could therefore be the precursor of Bitcoin’s major next move upward.
BTC Bears in Trouble
Although the recent bearish sentiment has led some to expect further price drops for the largest cryptocurrency based on reported market cap. technical The indicators on the chain suggest that this is not true.
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For example, short positions have been rising sharply within the $100,000–$110,000 range, increasing the likelihood of a short squeeze – which could drive BTC to a new all-time high (ATH).
It is important to be cautious, however, because short-term holders are not a new phenomenon. selling Bitcoin is not a popular currency, and many people have shown skepticism during the recent drops. BTC is currently trading at $101,954, an increase of 1.1% over the last 24 hours.
Charts from TradingView.com and CryptoQuant.com.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
