BTCBitcoinNeutralBitcoin

3/23/2024 on

Long-term investors behaviour

The Long Term Holder Spent Output Profit Ratio is a crucial metric used in analyzing market trends and investor behavior, particularly among long-term investors. A cohort of BTC investors is the “long-term holder” (LTH) group, who hold their coins for at least 155 days before selling. A SOPR trending higher shows profit is being realized, while a downward trending SOPR indicates losses. As we can see in the chart, the Bitcoin long-term holder SOPR (EMA 144) had more spikes since the beginning of March, which means that investors took some profits on the way as the price reached new highs.  

ETHEthereumBullishEthereum

3/13/2024 on

Ethereum’s signs of strength

After the FTX event, Ethereum's netflow and its reserves on spot exchanges highlighted a strong behavioral pattern among Ether investors that have suggested since then a strong belief in Ethereum's future recovery. The chart makes it clear that Ethereum all-exchange's spot reserve has been constantly in a downtrend due to big outflows, while the total value staked of Ethereum has increased. The total value staked balance of Ethereum is currently over 31 million, reflecting fundamental belief and a positive sentiment. The decline of exchange reserves and a continuous staking commitment indicate an understanding of Ethereum’s intrinsic value and a strong belief in the asset’s staking fundamentals. A decrease in the exchange reserves means there isn’t much selling pressure in the Ethereum market. If this steep downtrend continues, the price could go up even further.  

BTCBitcoinBullishBitcoin

2/27/2024 on

New market participants are missing...for now

At the end of 2023 and the beginning of 2024, Bitcoin and other cryptocurrencies have been among the beneficiaries of a price increasing environment driven mostly by the Bitcoin spot ETF major event. The chart visualization highlights the historical cycle of new participants. When we explore UTXO data, the younger age bands tend to spike up when prices rise fast before topping out. One of the most important things that defines a sustainable bull market is the arrival of new investors, which for now we might conclude that we are still in the growing early stages. The wave of institutional interest may have the chance to show its power this year as new investors might follow for fear of missing out on the latest investing trends in crypto market. UTXO Age Bands is a set of all active supply that were last moved within a specified age band. The on-chain indicator helps investors understand the market participants' dynamics by offering vital insights to identify and forecast the market cycle stage.  

BTCBitcoinBearish(Nuanced)Bitcoin

2/13/2024 on

Area of high interest for crypto market participants

UTXOs in profit entered a historical area of great interest for participants in the crypto market. Currently, 97.3% of Unspent Transaction Output are in profit, which means that we should pay more attention as we can see a possible selling pressure in the next period, if BTC investors want to take profit. We can observe that historically, the UTXO in profit indicator can stay in this area for a longer period and we can assume that the distribution process takes place with the entry of several participants in the market. If investors' belief in the rise of the Bitcoin price remains firm, a possible wider correction of the Bitcoin price can be postponed until investors consider that the profit they can get is good enough to be motivated to sell. Monitoring on-chain indicators and being ready to act to the changing market conditions, are important for a successful investments.  

BTCBitcoinNeutralBitcoin

2/6/2024 on

Bitcoin halving

The Bitcoin Halving is the most important event for Bitcoin and It occurs every four years. The next halving, which will take place roughly mid of April, is expected to be extremely interesting as the industry has evolved dramatically in the past four years, especially because Bitcoin and cryptocurrencys have become a part of mainstream news and got a rising institutional interest. Bitcoin’s saw more adoption and more money poured in than ever before. Looking to the current pre-halving market cap which is roughly $848B and the past ones during the halving events, we can understand better the incredible Bitcoin’s journey. Volatility around the halving event can influence price dynamics and it presents both uncertainties and favourable circumstances. The Bitcoin’s supply structure acts as a key narrative to higher scarcity and lower inflation. While there is no one that can predict the future, supply constraints will positively impact the price of Bitcoin on the long run.