Connect with us

Market

Has Bitcoin Price Hit Bottom? 4 Crucial On-Chain Signals

Published

on


In the crypto ecosystem, pinpointing the exact moment Bitcoin (BTC) prices bottom out is akin to finding a needle in a haystack. Recent data, however, provides some insights into whether the Bitcoin price has bottomed.

As the digital currency touched a one-month low of $58,500, analysts from CryptoQuant and Glassnode revealed four crucial on-chain indicators to watch. These indicators could be useful for analyzing market behaviors near the low points and understanding the conditions necessary for prices to rebound and rise again.

1. Tracking Bitcoin Demand Growth

The first quarter of 2024 saw a remarkable surge in Bitcoin demand coinciding with the launch of US spot ETFs, establishing record highs. However, post-May, this demand has seen a significant slowdown.

It is vital to observe the demand from permanent holders to determine whether Bitcoin has bottomed out. Permanent holders are now buying at a rate of 72,000 Bitcoin per month.

However, demand is significantly lower than in early 2024. A resurgence to these levels is essential for a sustainable price rally.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Bitcoin Demand From Permanent Holders
Bitcoin Demand From Permanent Holders. Source: CryptoQuant

Apart from the demand side, Glassnode’s analysis reveals significant insights into the behavior of long-term holders (LTHs), who play a crucial role in the supply side as well. LTHs typically distribute coins and take profits during bull markets, helping to establish market cycle tops.

Currently, the market is witnessing a regime where LTH divestment is moderated. This indicates a move toward equilibrium rather than euphoria, which is a phase when the unrealized profits of LTHs are more than 250%. The high profits motivate LTHs to sell BTC aggressively, marking a market top.

The current equilibrium phase suggests that while LTHs are not yet ready to offload their holdings massively, they are also not accumulating at a pace, thus providing a balanced supply dynamic in the market.

2. Assessing the Profitability of Traders

Another indicator is the profitability of traders. Currently, on-chain unrealized margins for traders are in the negative, suggesting reduced selling pressure but not necessarily a readiness for a price rebound.

For a bullish signal, these margins need to turn positive and rise above their 30-day simple moving average.

“Since mid-June, the spot price has plunged below the cost basis of both the 1-week to 1-month-old holders ($68,500) and 1-month to 3-month-old holders ($66,400). If this structure persists, it has historically resulted in a deterioration of investor confidence and risks this correction being deeper and taking longer to recover from,” Glassnode said.

Read more: 8 Best On-Chain Analysis Tools in 2024

Bitcoin On-Chain Trader Realized Price and Profit/Loss Margin
Bitcoin On-Chain Trader Realized Price and Profit/Loss Margin. Source: CryptoQuant

3. Evaluating Stablecoin Liquidity

The growth in Tether’s USDT market capitalization is a proxy for liquidity in the cryptocurrency market. After peaking at $12.6 billion in late April, the growth over the past 60 days has slowed dramatically to just $2.5 billion, marking the slowest pace since November 2023.

An acceleration in stablecoin liquidity is essential for Bitcoin prices to rally. This will provide the market with the needed capital inflow to support higher price levels.

USDT Market Cap Change and Bitcoin Price
USDT Market Cap Change and Bitcoin Price. Source: CryptoQuant

4. Monitoring the Ultimate Bitcoin Price Support Level

The final indicator to watch is Bitcoin’s support level, currently pegged at $56,000 based on Metcalfe’s price valuation bands.

“This valuation is based on the Metcalfe law that states the value of a network is proportional to the number of users in the network,” CryptoQuant explains.

This level has historically acted as both resistance and support in previous cycles. It also provided support to Bitcoin when its price dropped to around $56,500 in May 2024. A drop below this critical support could signal a significant market correction while maintaining above this level could suggest the market has bottomed.

Read more: How To Evaluate Cryptocurrencies with On-chain & Fundamental Analysis

Bitcoin Metcalfe Price Valuation Bands
Bitcoin Metcalfe Price Valuation Bands. Source: CryptoQuant

Amid these technical indicators, social sentiment also shows signs that the market may believe the bottom has been reached. Analysis from Santiment highlighted a spike in social volume and dominance for the term “bottom,” suggesting a growing belief among investors and traders that Bitcoin’s price may not fall further.

However, the market often tends to go against the retail sentiments. Hence, traders and investors should consider the nuances carefully and do their own research before building new market positions.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Market

Trump’s $500 Billion Stargate Venture Sparks AI Crypto Boom

Published

on


AI tokens surged on Wednesday after President Donald Trump unveiled a new joint venture to invest up to $500 billion in artificial intelligence infrastructure. 

The partnership involves major players such as OpenAI, Oracle, and SoftBank and will form a new entity called Stargate.

Market Focuses on AI Coins as Trump’s Stargate Initiative Gains Traction

The Stargate Project will invest $500 billion over the next four years, building new AI infrastructure in the US. The venture will focus on developing crucial data centers and the electricity generation required to power the AI sector.

The announcement has already had a noticeable impact on the broader market, particularly in AI-related cryptocurrencies. Following the news, the market capitalization of AI tokens surged by 9%, reaching $45.83 billion at press time, according to CoinGecko.

In fact, the market cap of AI agent tokens alone rose by 13% to hit $14.9 billion.

AI agent tokens, such as Virtuals Protocol, AIXBT, and AI16Z, saw impressive gains. Virtuals Protocol rose by over 13% in the past 24 hours, while AI16Z experienced a remarkable 36% increase. AIXBT token rose by 27% over the same period.

AI tokens
Price Performance of AI Agent Tokens. Source: CoinGecko

The surge in AI tokens reflects a broader shift in market interest as investors move capital towards more “sentient” tokens.

“Capital is rotating back from static memes to sentient coins,” AI researcher S4mmy commented on Twitter.

The analyst added that Fartcoin and AIXBT are sustaining their “mindshare dominance,” but face declining market caps after a heated run. Commenting on Virtuals Protocol, he said it continues to solidify its position as a backbone of the Agentic infrastructure.

Moreover, analyst CyrilXBT said he believes “AI will create generational wealth in 2025.”

“People said Bitcoin was a joke. People said AI agents are a gimmick. Guess what else they’ll say? ‘Why didn’t I listen when generational wealth was staring me in the face?,” CyrilXBT commented.

The shift towards AI is particularly interesting, given the trend of investments a few days back. Capital was flowing into Donald Trump-related tokens, such as TRUMP and MELANIA, which have seen significant volatility

However, BeInCrypto reported that smart money traders are now focusing on AI tokens after the hype around TRUMP faded. According to data from Nansen, a substantial amount of VIRTUAL, FARTCOIN, and AIXBT tokens are held by smart money.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Market

Will an Upside Break Spark a Surge?

Published

on



Este artículo también está disponible en español.

Ethereum price is struggling below the $3,500 resistance while Bitcoin gains. ETH is consolidating above $3,150 and might aim for an upside break.

  • Ethereum failed to gain pace for a close above $3,400 and $3,450.
  • The price is trading above $3,300 and the 100-hourly Simple Moving Average.
  • There is a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start another increase if it clears the $3,400 resistance level.

Ethereum Price Aims Key Upside Break

Ethereum price started a decent upward move from the $3,200 level but upsides were limited compared to Bitcoin. ETH cleared the $3,250 resistance to move into a short-term bullish zone.

The bulls were able to push the price above the $3,300 resistance zone. Besides, there was a clear move above the 50% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low. However, the bears are still active below $3,400.

Ethereum price is now trading above $3,300 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level or the 61.8% Fib retracement level of the downward move from the $3,445 swing high to the $3,203 low.

There is also a key contracting triangle forming with resistance at $3,355 on the hourly chart of ETH/USD. The first major resistance is near the $3,400 level. The main resistance is now forming near $3,445.

Ethereum Price
Source: ETHUSD on TradingView.com

A clear move above the $3,445 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,720 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $3,400 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250.

A clear move below the $3,250 support might push the price toward the $3,200 support. Any more losses might send the price toward the $3,120 support level in the near term. The next key support sits at $3,050.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,200

Major Resistance Level – $3,400



Source link

Continue Reading

Market

What Fueled Its New High

Published

on


Bitcoin, the leading cryptocurrency, has once again captured the spotlight after rallying to a new all-time high of $109,699. 

With the $110,000 milestone in sight, Bitcoin’s recent price action is being closely monitored by investors. A combination of sustained market conditions and renewed institutional interest has positioned the crypto king for potentially historic gains. 

Bitcoin Investors Are Bullish

Market sentiment has shown a significant shift in recent weeks, particularly through the lens of Coin Days Destroyed (CDD). Late 2024 saw a period of elevated CDD, signaling heavy activity among Bitcoin long-term holders (LTHs) cashing out during the rally. 

However, January has brought a notable cooldown in CDD, indicating reduced selling pressure from these key investors. This trend suggests that most profit-taking among LTHs is complete, paving the way for a more stable price trajectory.

Low CDD is often interpreted as a positive sign for Bitcoin’s recovery. It reflects conviction among long-term investors, who are holding onto their coins rather than selling into the market. Such investor behavior typically builds confidence and supports upward price momentum, providing a favorable backdrop for Bitcoin’s push to $110,000 and beyond.

Bitcoin MVRV Ratio
Bitcoin MVRV Ratio. Source: Glassnode

Bitcoin’s macro momentum has also gained strength, supported by the accumulation activity of smaller investors, often referred to as “Shrimps” and “Crabs.” These holders, who possess less than 10 BTC, collectively added over 25,600 BTC worth approximately $2.71 billion. This surge in accumulation is proof of growing confidence among retail investors.

The Shrimp-to-Crab balance spike indicates a broad base of support for Bitcoin’s price. This demographic’s increasing participation reflects long-term bullish sentiment. Their buying activity often stabilizes the market, acting as a cushion during corrections and amplifying price rallies during bullish phases.

Bitcoin Shrimp To Crab Balance
Bitcoin Shrimp To Crab Balance. Source: Glassnode

BTC Price Prediction: Onto New High

Bitcoin’s recent all-time high of $109,699 was fueled by strong market fundamentals and strong investor sentiment. If momentum continues, the cryptocurrency could breach the $110,000 mark, cementing its position as a high-performing asset in 2025. This milestone would likely attract additional buying interest, reinforcing Bitcoin’s bullish outlook.

To secure its ascent, Bitcoin must establish $105,000 as a strong support level. Currently trading around $105,562, the crypto king appears well-positioned to achieve this. A successful defense of this support zone could propel Bitcoin to new highs, unlocking further upside potential.

Bitcoin Price Analysis
Bitcoin Price Analysis. Source: TradingView

However, failure to maintain $105,000 as support could lead to a retracement toward $100,000. Such a decline would negate Bitcoin’s recent gains and dampen short-term bullish sentiment, raising the risk of prolonged consolidation before a renewed rally.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io