Recent analysis from CryptoQuant indicates potential shifts in the Bitcoin market. The data suggests that the current bullish cycle of the cryptocurrency might end, leading to a period of stagnation or declining prices in the coming months.
The Importance of On-Chain Metrics for Bitcoin
On-chain metrics are crucial in analyzing Bitcoin's price fluctuations. Key indicators like MVRV, SOPR, and NUPL help assess price cycles. Data from CryptoQuant shows that the 365-day moving average of these metrics is vital for identifying potential trend reversals in Bitcoin's market.
Actions of Large Holders
The behavior of Bitcoin whales supports expectations of a downturn. According to Ju, these large holders are selling their BTC at prices lower than they purchased, indicating a liquidity crunch in the market.
* On-chain data reveals a new downward trend reminiscent of past bear markets. * Historically, whales sell off during downturns, intensifying market pressure. * Current signals suggest that selling activity will likely persist in the coming months.
Potential Development Scenarios
The accumulating signs indicate that Bitcoin's market could experience sustained selling pressure, which may lead to further price declines or stagnation in the near term, challenging the cryptocurrency's previous bullish trajectory.
Analytical data from CryptoQuant suggests that Bitcoin will need time for stabilization and possible growth. Market participants should consider the behavior of large holders and on-chain metrics to accurately assess the situation.
