Bitcoin is up a little bit after the initial crash. dropping below the $100,000 mark. This decline can be attributed in part to the increasing geopolitical pressures. After reports that the US had launched military attacks on Iran, this digital asset fell to a low of $98,974.
Bitcoin, at the time this article was written, had gained some ground. The price is now $102,1010. This represents a 2.4% gain over the past day and a 5.82% drop over the week. In the midst of this performance, recent analysis on-chain points towards a phase consolidation and not a structural break.
CryptoQuant analyst Darkfost revealed in a QuickTake post Long-term Bitcoin investors appear to maintain their positions, rather than selling them off. This indicates continued confidence despite the short-term volatility.
Bitcoin On-Chain Indicators Signal Consolidation, Not Capitulation
Darkfost believes that the market is currently in a period of quiet consolidation, and long-term investors are showing little interest to sell.
According to his 30-day moving-average of Binary Coin Day Destroyed, the indicator has consistently remained below the 0.8 threshold that is typically associated with large corrections. This value peaked recently at 0.6, before going downhill. It suggests that the market is not overheating.
Darkfost said that the current market structure could be a mirror of past markets where there was a bullish cycle. consolidation phases This led to further increases in prices.
In the past, he noted that bull runs were often characterized by. “staircase” The upward trend is a series of periods with little or no movement. This subdued feeling may signal that the markets are preparing themselves for an potential next leg higher. The analyst said:
It is important to note that this doesn’t signal the end for the bull cycle. We may see, like the previous two phases, a stair-step movement, where consolidation leads to another leg. In the past, Bitcoin rallies have been explosive when the market is calm and the attention has faded. The current quietness could be a sign of the next major move.
The Whales’ Behavior Is Unchanged Despite Market Tensions
Mignolet is another CryptoQuant Contributor who provided a complementary view. insight Whale activity in the current consolidation phase.
The market is similar to the double top formation that was seen in the year 2021. However, key whale signals haven’t matched those of that peak.
Ethereum transactions outflows – often used to predict large exits by investors – haven’t shown the same spikes as seen during the 2021 market top.
Mignolet stated that Ethereum’s transactional data is still strongly correlated with Bitcoin prices, despite its gradual market share decline relative to the other layer-1 or layer-2 chains.
It is clear that large investors aren’t making a rush to exit the market despite increased geopolitical unrest and volatility in short term prices.
Chart created by TradingView, DALL-E.
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Source: www.newsbtc.com
