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NewsBTC 2024-12-10 04:30:48

Is Bitcoin Entering a New Phase? Analysts Break Down Key Trends

So far, the Bitcoin market continues to demonstrate resilience as it maintains its price above the $90,000 price market despite various factors influencing its price movements. Amid this, a CryptoQuant analyst, aytekin466, recently shared insights into whether the cryptocurrency could face another significant price correction. Related Reading: Bitcoin Is ‘Highly Likely’ In A Supercycle: Expert Explains Why Are Major Corrections a Thing of the Past? aytekin disclosed that with Bitcoin experiencing a maximum decline of 30% in its current cycle — notably during the “carry trade shock” in August — this marks a milder drawdown than previous cycles. According to the analyst, the increasing presence of ETFs has contributed to stabilizing the market by mitigating drastic shakeouts. However, the dynamics surrounding BTC investment remain a careful balancing act. The analyst noted: Waiting for the next big correction to enter the market or add fresh capital might result in being late to the rally. On the other hand, being overly aggressive while the market is surging could be risky. Mentioning that it is better to understand where the market stance is as of now, aytekin highlighted that current metrics, such as a positive Coinbase premium and the cooling off of the Spent Output Profit Ratio (SOPR), suggest a “healthy consolidation phase.” Moreover, funding rates have eased following recent price fluctuations, while miners show no urgency to liquidate their holdings. Stablecoin flows to spot exchanges are also at their highest levels this year, signaling active market participation. aytekin wrote: In conclusion, a correction could happen at any time without a specific reason, but the current situation doesn’t indicate a shift in momentum. Further Growth In Bitcoin Price Expected? Another CryptoQuant analyst, Darkfost, highlighted positive market signals from stablecoin activity and BTC netflows. The Exchange Stablecoin Ratio — comparing Bitcoin reserves on exchanges to stablecoin reserves — is in decline. This trend indicates strong buying pressure as stablecoins for Bitcoin purchases increase while Bitcoin exchange reserves dwindle. In parallel, weekly Bitcoin netflows reveal consistent withdrawals from exchanges, suggesting a sentiment shift toward mid- to long-term holding among investors. These metrics indicate a favorable market environment with strong demand and investor confidence. Related Reading: Bitcoin’s Market at a Crossroads: Are Long-Term Holders Signalling a Correction or a Rally? Notably, the declining exchange stablecoin ratio aligns with a reduction in immediate selling pressure. At the same time, the accumulation of Bitcoin signals that market participants view the current environment as conducive to long-term growth. Darkfost wrote: These combined metrics, lower exchange stablecoin ratios and decreasing Bitcoin reserves, indicate a positive market environment. They highlight that demand remains strong and that investors are demonstrating confidence in Bitcoin’s potential Featured image created with DALL-E, Chart from TradingView

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