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NewsBTC 2025-03-22 08:30:42

Analyst Compares Current Bitcoin Pullback to 2024 Market—Here’s What They Found

Bitcoin continues to experience short-term volatility, struggling to maintain momentum above key resistance levels. After recently attempting to break back above the psychological $90,000 level, the asset has pulled back again. As of the time of writing, Bitcoin is trading at approximately $83,239, down 2.2% over the past 24 hours and nearly 23% below its all-time high above $109,000 reached in January. Despite this, some analysts suggest underlying indicators may point toward a potential market rebound if specific conditions align. Related Reading: Bitcoin Whales Are Back—Could This Be the Catalyst for the Next Rally? Stablecoin Trends Offer Insight into Bitcoin Market Liquidity Crypto Dan, a contributor to the CryptoQuant QuickTake platform shared an analysis titled “Comparison of the March 2024 Correction and the Current Market,” focusing on the relationship between stablecoin supply and Bitcoin’s price behavior. According to Dan, the flow of stablecoins into the market can serve as a proxy for measuring potential buying power, with higher stablecoin reserves typically associated with increased purchasing capacity among market participants. Dan noted that during the March–October 2024 correction phase, the supply of stablecoins remained relatively low or declined, contributing to a more prolonged bearish trend. In contrast, the current correction has been accompanied by a gradual increase in stablecoin supply, which may indicate that market participants are preparing to re-enter positions as they await favorable conditions. Dan wrote: The current market is in a state where it is ready to rise quickly whenever strong catalysts emerge. Patience remains essential in the investment market. While it is premature to declare the end of the bullish cycle, the market continues to present conditions worth monitoring closely. Notably, this upward trend in stablecoin reserves suggests that investors are not fully exiting the market but are instead adopting a wait-and-see approach, holding liquidity in stablecoins while watching for confirmation of a trend reversal. This behavior often precedes renewed buying activity when confidence begins to return. Sentiment Signals Shift on Binance as Ratio Turns Positive Another CryptoQuant analyst, Burak Kesmeci, analyzed the Taker Buy Sell Ratio on Binance—an exchange widely viewed as a leading barometer of retail and institutional sentiment due to its high trading volume. The Taker Buy Sell Ratio measures the aggressiveness of buyers versus sellers, with values above 1.00 indicating that buyers are initiating more trades than sellers. Kesmeci observed that this ratio has been steadily forming higher lows over the past ten days and recently transitioned from the negative to the positive zone. Related Reading: This Bear Market Indicator Says Bitcoin Price Is Headed For Crash To $40,000, Here’s When This shift could suggest that sentiment among active traders is improving, potentially setting the stage for upward price movement if this trend continues. Kesmeci explained: If the Taker Buy Sell Ratio remains above 1.00, especially considering Binance’s market influence, Bitcoin’s uptrend from the $76,600 region could see continuation. Featured image from DALL-E, Chart from TradingView

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