Why Bitcoin Bull Market Shakeouts Are Healthy For Holders
At this point, no one can deny that Bitcoin has begun a new bull market. The 500% rally and new all-time high in 2020 is all the evidence that is needed. But that doesn’t mean that corrections won’t soon come, and according to VanEck’s digital asset director, Gabor Gurbacs even a +50% price drop will […]
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A quant explains how Bitcoin on-chain data may be used to identify whether a high was because of peak formation or due to a shakeout. Open Interest, Funding Rates, And LTH-SOPR May Signal Whether A Peak Vs A Shakeout As explained by an analyst in a CryptoQuant post, a combination of different on-chain indicators may be able to identify whether a high means the price is forming a peak or if it’s just a shakeout. The relevant Bitcoin indicators here are the open interest, the funding rates, and the LTH-SOPR. Before considering the trend of each, here are some quick explanations of what....
Bitcoin price has now declined to $56k; does that mean a top is in? Or is this just a shakeout? Here’s what the SOPR indicator says about it. The Bitcoin SOPR Indicator The BTC Spent Output Profit Ratio (or SOPR in short) is an on-chain indicator that estimates whether investors are selling at a profit or a loss. When the metric’s value is above one, it means coins that were moved during the period were sold, on an average, at a profit. While SOPR values less than one imply the overall market has been selling at a loss during the particular timescale. If the indicator starts....
Top Quant uses the puell multiple to point out a pattern that explains why the current Bitcoin bull cycle is only in the first phase. The Bull Market Is Not Over, Phase 1 Has Just Begun According to a CryptoQuant analyst, past cycles show that the current Bitcoin bull market isn’t over yet. The puell multiple seems to reveal where the price might head next. The puell multiple is a BTC indicator used to tell how healthy miners’ revenue is. It’s calculated by dividing the mining revenue by the 365-day moving average (MA) of the same. Puell Multiple= Mining Revenue USD ÷ 365....
Record trading volumes have accompanied bitcoin's rally this year, and subsequent swoon, offering a healthy sign of just how much price discovery is taking place in rapidly growing (to $3T?) cryptocurrency markets.
A recent Glassnode report says some long-term holders (LTHs) of bitcoin offloaded part of their holdings and cashed out their profits during a bull-run. Still, the report explains that the sell-off, which has been noticeable since late November, is not necessarily a sign of an approaching bear market. Instead, as the data shows, BTC is poised for another rally. Since Nov. 26, when the price of BTC dropped by more than 17% in 24 hours, the digital asset has recovered and currently trades above $19,000. Some analysts believe that it is only a matter of time before the leading crypto....