Bitcoin price continues to decline. It is now only trading above $81,000. That’s a big drop from the all-time record high it reached in January. BTC currently stands at $81,086, which represents a 1.7% rise in the previous 24 hours. However, it still shows a 2.3% decline. decrease over the past week.
Investors have been concerned that the current correction will lead to a recovery or if it’ll enter a long consolidation period. CryptoQuant’s Darkfost, an analyst at CryptoQuant, has pointed out that there are no clear reasons behind Bitcoin’s price fluctuations. interesting correlation BTC vs Nasdaq
According to Darkfost, Bitcoin is currently more correlated with the Nasdaq index than with the S&P 500, suggesting that macroeconomic factors and broader market sentiment BTC’s performance is influenced by a number of factors.
The correlation between Bitcoin and external trends such as the changes to US equity markets or monetary policy may be driving Bitcoin’s direction.
Bitcoin Market Cycle and Short-Term Investor SOPR
CryptoQuant’s Kripto Mezsimi, an analyst at the company, has been tracking Bitcoin price changes. examined The Short-Term Holder Spent Output profit Ratio (SOPR), EMA (155), provides insight into market cycles, investor behavior and the SOPR.
Mevsimi claims that the SOPR-EMA (155) has recently reached a peak and is currently declining. This indicates to Mevsimi that holders of short term securities are realizing less profit. This could be a sign that the market has entered a consolidation stage.
According to the analyst, if SOPR holds at 1 as a support level and is able to hold it for a period of time then this may indicate resetting before the next possible uptrend. If SOPR falls below 1, this could signal increased selling pressure and lead to further market weakness.
Mevsimi stressed that SOPR needs to stabilize around 1, and then continue trending upwards. If this level is not maintained, it may indicate a change in the market dynamics that could affect Bitcoin. long-term growth trajectory into question.
The Whales Continue to Accumulate Despite Market Correction
CryptoQuant’s caueconomy analyst has stated that the short-term trend of prices is still uncertain. highlighted There is a noticeable accumulation trend among the largest Bitcoin holders. In the past 30 days, Bitcoin Whales added more than 65,000 BTCs to their portfolios. This is a reflection of strong purchasing pressure by major participants in the network.
Caueconomy reported that this accumulation occurs despite a broader correction in the markets, suggesting whales absorb supply instead of selling their holdings.
It is not the case with exchanges or miners, who often dump BTCs to maintain liquidity. When the If you want to know more about how to get started, current accumulation pattern If this trend continues for a few more weeks, the buying pressure could be similar to that seen in November and December of 2023, when Bitcoin rallied.
Chart created by TradingView, DALL-E.
“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
