Binance Published a Surprising Report on Bitcoin (BTC): “Four Indicators Clearly Explain Bitcoin’s Current State!”
Bitcoin ($BTC), the leading cryptocurrency, briefly rose above the $82,000 level in recent weeks but failed to hold that level.
Renewed tensions between the US and Iran, along with growing concerns about inflation in the US, caused Bitcoin to fall below $77,000.
As Bitcoin continues to be affected by macroeconomic events, Binance Research published its latest detailed report on Bitcoin.
According to Binance Research data, four on-chain indicators point to weakening selling pressure on Bitcoin.
The Binance Research team analyzed four on-chain indicators that point to weakening selling pressure on Bitcoin. The company pointed to several factors:
- More than 60% of addresses held $BTC for more than one year: this indicates a decline in the amount of $BTC circulating on the market as the long-term holding trend strengthens.”
- Long-term investors dominate the market.
- The supply of $BTC on exchanges is shrinking: even during the COVID-19 pandemic, the share of bitcoins held on exchanges was approximately 17.6%, but it has now fallen to 15.0%. Based on this, it is estimated that around 500,000 $BTC have been withdrawn from exchanges. The market generally interprets the decline in the share of assets held on exchanges as a signal of reduced short-term selling pressure.
- Short-term investors exited their losing positions and moved into unrealized profit: at the moment, the STH MVRV indicator, which shows the profitability of short-term investors, has also recently risen above 1.0. Since last November, the indicator had remained below 1 for a significant period of time. This means that current investors have once again entered the zone of unrealized profit.
The Binance analyst team concluded that these indicators point to a low probability of a new wave of selling pressure and that the current market phase shows a typical pattern often observed before a sustainable recovery.
See also: "Bitcoin Holds Near $77K After Four Consecutive Days of Declines"
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