As the Bitcoin price hits its new all-time high of $70,000 on Friday, the biggest question in the investor community is will this rally continue. As of press time, BTC faces partial retracement currently trading at $68,423 with a market cap of $1.325 trillion.
Bitcoin Bulls and Bears In Tight Fight
Renowned crypto analyst CrediBULL crypto has highlighted a notable dynamic in the Bitcoin market, shedding light on the ongoing battle between spot buyers and passive sellers.
According to the analysis, there has been a significant influx of spot bids, amounting to approximately $700 million in Bitcoin purchases within a narrow price range. Despite this aggressive buying activity, the price of Bitcoin has struggled to make significant upward progress, with passive sellers currently capping the price.
The key question posed by CrediBULL crypto is which side will exhaust their resources first: the passive sellers or the active buyers. With open interest (OI) remaining flat, the analyst suggests that the current market dynamics primarily involve spot buyers and sellers, with leveraged traders largely observing from the sidelines.
Moreover, funding rates in the market are relatively low, indicating a healthy environment for trading. CrediBULL crypto expresses optimism about the potential for a multi-thousand dollar upside move if active buying pressure persists and overwhelms passive sellers. The Bitcoin ETFs have continued strong buying with BlackRock’s IBIT hitting new highs with $12 billion in holdings.
However, in the event that sellers maintain control, any potential dip in the market is expected to be limited in magnitude. With minimal leverage in the market due to the lack of open interest, significant downside liquidations are less likely.
In conclusion, CrediBULL crypto emphasizes the overarching trend of Bitcoin’s price appreciation over time and advises investors to view dips as buying opportunities, anticipating eventual upward movement in the market.
Bitcoin Growth Cycle Can End in 150 Days
On-chain platform CryptoQuant throws light on the Bitcoin trends using the aSOPR metric. The Adjusted Output Profit Ratio (aSOPR) represents the ratio of spent outputs (those existing for more than an hour) in profit at a specific time window. This adjustment is achieved by excluding the movements of coins that existed for less than an hour.
When the value of aSOPR is above ‘1’, it suggests that more investors are selling their assets at a profit. Conversely, values below ‘1’ indicate that more investors are selling at a loss.
Examining data from past cycles, CryptoQuant notes that growth phases typically span between approximately 83 to 387 days. Taking the midpoint of this range, the average duration stands at approximately 235 days. Based on the current trend, with the ongoing growth period having lasted 138 days, it suggests a potential scenario where the Bitcoin growth cycle might conclude within the next 100-150 days.
Other market analysts predict that once the Bitcoin growth cycle takes a halt, the altcoins will lead the show of the next leg in the broader market rally.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
