Analysts at CryptoQuant expect a “significant” movement in the cryptocurrency market in the near future. Experts emphasize the record volume of bitcoins accumulating on the addresses of long-term investors and also point out a number of other important metrics that could influence price dynamics.
This is reported by Business • Media
Five Key Indicators for the Cryptocurrency Market
According to CryptoQuant, there are currently 298,000 BTC concentrated in wallets that systematically buy and hold the asset – a historical maximum. This accumulation strategy indicates investors’ confidence in the prospects of the first cryptocurrency even amid short-term fluctuations.
Additionally, the company highlights five main indicators that could determine the further development of the market:
- Increase in USDT Market Capitalization. Over the past two months, Tether’s market capitalization has increased by $10 billion. Analysts believe this signals an influx of new liquidity and could strengthen bullish trends in the market.
- SSR RSI Index in the “Buying Zone”. The Stablecoin Supply Ratio RSI, which reflects the ratio of bitcoin capitalization to stablecoin volumes, has dropped to 21, which traditionally indicates a favorable moment for buying.
- Record Amount of BTC Held by Long-Term Investors. Wallets that are not prone to short-term selling have accumulated 298,000 BTC.
- Decrease in Inter-Exchange Flow Pulse. The flow of bitcoins between different exchanges is currently decreasing, which is characteristic of a bear market. However, experts predict a possible reversal of this trend in the near future.
- Short-Term Holders Realizing Losses. Bitcoin is currently trading below the realized price level for short-term holders ($109,775), indicating losses on recent purchases. A return of the price above this level is necessary to restore the bullish trend.
“CryptoQuant analysts stated that the next movement in the cryptocurrency market will be ‘significant’.”
Trends in the Altcoin Market
Previously, CryptoQuant noted that the current cycle of altcoin rotation is gradually coming to an end. This trend may impact capital distribution and price dynamics in the crypto sector in the near term.