Cycling On-Chain #1: Unwinding Leverage
A reflection on the first large correction of and outlook for the remainder of 2021.Dilution-proof, June 1, 2021Cycling On-Chain is a monthly series that uses on-chain and price-related data to estimate where we are in bitcoin’s market cycle. It originally started as a monthly Twitter thread that was later adopted by Bitcoin Magazine. In this first edition of Cycling On-Chain, we’ll look back at the first leg up in the 2020–2021 bull run and the circumstances that turned out to be fertile soil for a firm downward correction that brought fear into the market. The second part will attempt to....
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This third edition of Cycling On-Chain takes a closer look at bitcoin’s ongoing supply squeeze and recent short squeeze.
Bitcoin is once again at a pivotal moment after briefly dipping below the $100,000 level on Tuesday, testing one of the most important psychological and structural supports of the cycle. The market remains tense as bulls attempt to defend this zone amid rising volatility and persistent selling pressure. Momentum has clearly slowed, and traders are now looking for signs of stabilization as the next directional move takes shape. Related Reading: ‘Bitcoin $100K Break Was Emotional’ – On-Chain Data Shows No Structural Damage According to top analyst Darkfost, a major shift is unfolding beneath....
On-chain data shows the Bitcoin estimated leverage ratio has continued to hit new highs recently, a sign that could be bearish for the price of the crypto. Bitcoin Estimated Leverage Ratio Continues To Set New Highs As pointed out by an analyst in a CryptoQuant post, the BTC leverage ratio has been moving up since […]
As a violent credit unwinding seems inevitable, on-chain data suggests bitcoin holders remain convicted.