Crypto Shuttle News

Tag: Suggests

  • On-chain Data Suggests Bitcoin Miners Were Behind The Selloff

    On-chain Data Suggests Bitcoin Miners Were Behind The Selloff

    [ad_1]

    On-chain shows Bitcoin miner outflows have been elevated recently, suggesting miners were involved in the recent selloff that took the price of the crypto below $42k.

    Bitcoin Miner Outflows Spiked Up Before The Crash Below $42k

    As pointed out by an analyst in a CryptoQuant post, BTC miners seem to have been one of the sellers behind the price drop to $42k.

    The relevant indicator here is the “miner outflow,” which measures the total amount of Bitcoin exiting wallets of all miners.

    When the value of this metric spikes up, it means miners are moving a large number of coins out of their wallets right now. Such a trend can be bearish for the price of the crypto as it may be a sign of dumping from these original whales.

    Related Reading | Ark CEO Cathie Wood Is As Bullish As Ever, Sees Bitcoin Hitting $1 Million By 2030

    On the other hand, low values of these outflows suggest a normal or healthy amount of selling from miners. This trend, when sustained, can prove to be bullish for the BTC price.

    Now, here is a chart that shows the trend in the Bitcoin miner outflows over the past several months:

    Bitcoin Miner Outflows

    Looks like the value of the indicator has shot up recently | Source: CryptoQuant

    As you can see in the above graph, the Bitcoin miner outflows seem to have shown spikes in recent weeks, just before the selloff.

    This would suggest that miners look to have played a role in the dump recently, sending the price of the coin diving below the $42k level.

    A trend like this has been observed a few times in the past several months already, as the quant has marked in the chart.

    Related Reading | Mexico’s Third Richest Man Says No To Bonds, Yes To Bitcoin

    Currently, it’s unclear whether Bitcoin miners have already calmed down or if more selling is coming in the next few days.

    BTC Price

    After around twenty days of holding strongly above the level, Bitcoin’s price is now once again revisiting the $41k mark.

    At the time of writing, the coin’s price floats around $41.1k, down 11% in the last seven days. Over the past month, the crypto has gained 4% in value.

    The below chart shows the trend in the price of BTC over the last five days.

    Bitcoin Price Chart

    The value of BTC seems to have taken a plunge over the past twenty-four hours | Source: BTCUSD on TradingView

    Due to this sharp downtrend in the price of the coin as well as the wider market, crypto futures has collected a huge amount of liquidations today. In the last 24 hours, liquidations have amounted to more than $322 million, $175 million of which occurred in the past 4 hours alone.

    Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

    [ad_2]

    Source link

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

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

    [ad_1]

    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



    [ad_2]

    Source link