Bitcoin (BTC) Bulls and Bears Are in Tight Fight, Will Altcoins Lead the Next Rally?
As the Bitcoin price reached an all-time high of $70,000 on Friday, the biggest question in the investor community is whether this rally will continue. As of the time of publication, BTC is currently trading at $68,423 with a market cap of $1.325 trillion.
Bitcoin Bulls and Bears in Tight Fight
Prominent crypto analyst CrediBULL crypto shed light on the ongoing battle between spot buyers and passive sellers, highlighting a notable dynamic in the Bitcoin market.
According to the analysis, there was a significant influx of spot bids for Bitcoin purchases in a narrow price range, amounting to approximately $700 million. Despite this aggressive buying activity, Bitcoin price has seen a significant rise as passive sellers are currently limiting the price.
The fundamental question posed by the CrediBULL crypto is which side will exhaust its resources first: passive sellers or active buyers? The analyst suggests that with open interest (OI) remaining stable, current market dynamics primarily involve spot buyers and sellers, with leveraged investors largely observing from the sidelines.
Additionally, the relatively low funding rates in the market indicate a healthy environment for trading. CrediBULL cryptocurrency is expressing optimism about the potential for an upside move of thousands of dollars if active buying pressure continues and overwhelms passive sellers. Bitcoin ETFs continued strong buying, with BlackRock’s IBIT hitting new highs with $12 billion in assets.
However, if sellers maintain control, the potential decline in the market is expected to be limited in magnitude. Since leverage in the market is minimal due to a lack of open interest, significant downside liquidations are less likely to occur.
In conclusion, CrediBULL crypto emphasizes It is the general trend of Bitcoin’s price increase over time and advises investors to view dips as buying opportunities in anticipation of the eventual upward move in the market.
Bitcoin Growth Cycle May End in 150 Days
On-chain platform CryptoQuant sheds light on Bitcoin trends using the aSOPR metric. Adjusted Output Profit Rate (aSOPR) represents the ratio of outputs spent in a given time window (those available for more than one hour) to profit. This adjustment is accomplished by excluding movements of coins that have existed for less than an hour.
A SOPR value above ‘1’ indicates that more investors are selling their assets at a profit. On the contrary, values below 1 indicate that more investors are selling at a loss.
Analyzing data from past cycles, CryptoQuant notes that growth phases generally last between approximately 83 and 387 days. Taking the midpoint of this range, the average duration is around 235 days. Based on the current trend, the ongoing growth period lasts 138 days, suggesting a potential scenario where the Bitcoin growth cycle could be completed within the next 100-150 days.
Other market analysts predict that altcoins will lead the next leg of the broader market rally once the Bitcoin growth cycle stalls.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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