In the world of cryptocurrencies, where market trends change rapidly, it is imperative to keep a close eye on various indicators that can provide insight into the behavior of traders and investors.Recently, CryptoQuant data disclosure Short-term traders are preparing to sell Bitcoin, as indicated by the increase in exchange reserves.
Reserves are a measure of the total amount of coins available for sale in the market. It is calculated from Floor In/Out Current and Net Current. If the net flow is trending upward, it indicates selling pressure and vice versa.
The exchange’s current reserve count stands at 2.19 million BTC, indicating that short-term traders are preparing to sell their holdings. The Short-Term Return on Output (STH-SOPR) indicator, which measures return on output, also shows that short-term traders dominate the market.
The STH-SOPR indicator is calculated as the dollar value of output spent at time of expenditure (real value) divided by the dollar value of output spent at time of creation (value at time of creation). If the value is above 1, it means that traders are selling bitcoins for a profit. Conversely, if the value is below 1, the trader is selling at a loss.
#bitcoin trader ready #FOMC Sessions dominate the market as short-term holders https://t.co/flWdg28jgL
— Kyptos (@azcoinnews) March 18, 2023
According to CryptoQuant, the STH-SOPR indicator touched 1.05 on March 14, which means that short-term traders are currently dominating the market. Several factors are driving this trend, including the upcoming Federal Open Market Committee (FOMC) meeting on March 22 and Ramadan for Muslim traders is just around the corner. Teachers and some traders are happy with their profits or ready to exit the market at $30,000.
Additionally, the $29,000 to $32,000 price range represents significant resistance to consider. With the current price above $27,000, traders are preparing to gradually sell off their Bitcoin supply.
It should be noted that the FOMC meeting on March 20-21 is expected to have a major impact on the market, and traders need to proceed with caution. As the cryptocurrency market continues to grow and develop, it is crucial to keep a close eye on indicators and factors that may influence trends. This way, traders and investors can make informed decisions and navigate the markets efficiently.
Bitcoin On-Chain Data Shows Positive Investor Sentiment
In recent years, the world has witnessed the popularity of cryptocurrencies, especially Bitcoin. Despite its volatility, the “king of currencies” continues to attract investors with its potential as a store of value and an alternative to traditional financial instruments. As a result, tracking Bitcoin on-chain data has become a popular way of monitoring the state of the digital currency market.
Recently, the popular on-chain data analysis platform CryptoQuant was launched release New data on the highlights of the Bitcoin chain, providing insight into the current state. Bitcoin’s stablecoin ratio has “returned to May 2022 levels,” data shows.
Bitcoin Stablecoin Rates | Source: CryptoQuant
This is an important metric because it measures the potential purchasing power of Bitcoin. When the ratio value is low, it indicates high purchasing power. The indicator now shows an increase in the Buy & HODL ratio, implying that buying sentiment is now significantly better compared to the second half of 2022.
Fair Value of Bitcoin | Source: CryptoQuant
Additionally, the data also showed that Bitcoin’s fair value acted as a support line during the March 10 drop. This means that when Bitcoin plummeted due to banking problems including Silvergate, it fell close to fair value but was supported and recovered, reflecting strong investment sentiment in Bitcoin, certainly a risk asset. This is a positive sign for long-term investors.
Another important metric provided by CryptoQuant is the timed distribution of Bitcoin’s UTXOs (based on fair value). The metric shows the average purchase price during the token holding period and shows that most new buyers made a profit last week. Specifically, the data shows that the average purchase price of buyers who hold Bitcoin for 0 to 1 day is 26,556 USDT, and the average purchase price of buyers who hold Bitcoin for 1 day to 1 week is 23,808 USDT.
#bitcoin On-chain data reveals positive investor sentiment https://t.co/Nzy4HhyCUc
— Kyptos (@azcoinnews) March 19, 2023
Overall, the new data published by CryptoQuant provides valuable insights into the current state of the BTC market. While cryptocurrencies are notoriously volatile, these indicators represent positive sentiment among buyers and investors. This could support the growth of the leading cryptocurrency in the coming months.
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according to Kyptos