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  • Bitcoin On-Chain Demands Suggests That The Market Has Reached Its Bottom

    Bitcoin On-Chain Demands Suggests That The Market Has Reached Its Bottom

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    Bitcoin on-chain analysis can be a good way to try to guess where the market is headed. The market tends to repeat itself with metrics looking the same before a bull or a bear rally, thus making this data a pretty good indicator of what’s to come. Analyst Willy Woo uses this same data to demonstrate a pattern that occurs before the bull rally, the criteria which are being met once again.

    Start Of A Bull Run?

    In a recent string of tweets, analyst Willy Woo presents data from on-chain analysis that points to the bitcoin dump having reached its bottom. According to him, “Price in relation to on-chain demand from both speculative and hodl category of investors are now both at peak oversold levels.” Woo points out that the last time that something like this had happened was when bitcoin reached its bottom following the COVID crash.

    The analyst further outlines the times where this has happened in the past. Going as far back as 2012, he points out the same had been the case in February of that year. What followed had been the memorable 2021-2013 bull run that saw bitcoin gain more popularity among investors.

    Related Reading | Bitcoin Halving To Bring The Subsequent Crypto Frenzy

    Fast forward to 2015 and the same had been the case in January of that year. This time, the on-chain metric spelled the bottom of the bear market that had begun previously in 2014, putting an end to the onslaught.

    If Woo is right and the on-chain metric continues the way it has historically, then bitcoin may very well have reached the bottom, suggesting that this is the end of the downtrend. However, there is no telling if this is actually the case given that bitcoin had recorded back-to-back bull rallies in 2021.

    Bitcoin On The Charts

    Bitcoin has lost almost 50% from its all-time high of $69k which it hit in November of last year. This has however not affected the profits of the majority of holders. The digital asset remains one with the highest volume of holders that remain in profit after the market crash.

    Related Reading | El Salvador Chivo Bitcoin Wallet Relaunch To Serve 4 Million Users

    According to data from IntoTheBlock, 60% of all bitcoin holders are still in profit at current prices. It is important to note that the cryptocurrency was subject to massive sell-offs when investors panicked that the downtrend will continue. Most however have still kept their highly profitable status, with only 35% of all holders currently losing at market prices.

    Bitcoin price chart from TradingView.com

    Bulls struggle to pull BTC up as bears take hold | Source: BTCUSD on TradingView.com

    The majority are long-term holders and indicators point to investors still being very bullish on the digital asset despite the downtrend. With its current growth curve, it is expected that the cryptocurrency will see 1 billion holders in the next four years, making it a highly sought-after asset.

    Featured image from Bitcoin News, chart from TradingView.com



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  • Bitcoin dips 8% from highs as trader demands BTC bulls reclaim $37.5K

    Bitcoin dips 8% from highs as trader demands BTC bulls reclaim $37.5K

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    Bitcoin (BTC) climbed down from multi-day highs on Jan. 27 as the aftermath of the latest United States Federal Reserve meeting saw bulls taper their enthusiasm.

    BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

    Bitcoin disappoints below $37,500

    Data from Cointelegraph Markets Pro and TradingView showed BTC/USD walking back some of its gains, which had topped out at $38,950 on Bitstamp.

    The pair then refocused on $36,000, the level where it was trading at the time of writing.

    As momentum gathered pace, market commentators began hoping for a stronger weekly close, possibly including a challenge of the $40,000 mark. Now, however, the mood was markedly less euphoric.

    “Bitcoin rejected at $38K and hit the first important level of support at $36K here,” Cointelegraph contributor Michaël van de Poppe summarized to Twitter followers.

    “Might have a short-term bounce, but anything sub $37.5K isn’t shouting for bullishness.”

    BTC/USD annotated chart with support and resistance zones. Source: Michaël van de Poppe/Twitter

    Van de Poppe joined others in voicing dissatisfaction with the outcome of the Fed’s meeting, in particular with a lack of new insight and policy information from Fed Chair Jerome Powell.

    “With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,” a statement by the Federal Open Market Committee read.

    “The Committee decided to continue to reduce the monthly pace of its net asset purchases, bringing them to an end in early March.”

    With that, crypto markets had few macro cues to react to, a paradigm shift in price behavior yet to make an appearance.

    Crypto liquidations pass $300 million

    Altcoins followed Bitcoin in step to shed several percentage points on the day, once more adding to the week’s overall losses.

    Related: Bitcoin pundits split over BTC floor as Bloomberg analyst eyes bounce

    Ether (ETH) fell back below $2,500, still down 22% over the past seven days.

    ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

    Others fared somewhat better, with Dogecoin (DOGE) retaining most of its previous progress and Cardano (ADA) trading flat at $1.06.

    Not everyone escaped unscathed post-Fed, however, with total cross-crypto liquidations passing $320 million, data from on-chain monitoring resource Coinglass confirmed.

    Crypto liquidations chart. Source: Coinglass