Tracking capital flows through on-chain analysis is reflecting signs of strength for the price of Bitcoin (BTC).
With the recent interest rate cut in the United States, the price of bitcoin surpassed the cost base of short-term holders. This stands at 61,900 dollars (USD), according to data from the analysis firm Glassnode.
It should also be noted that the price has sharpened its rise after lower-than-expected inflation report in USA
At the time of this publication, as can be seen in the chart below, bitcoin is trading around USD 66,000, as can be seen in the Ethereum-moneda-nacional-calculadora/” target=”_blank” rel=”noreferrer noopener”>Price Calculator from CriptoNoticias and in the following graph of TradingView:
Bitcoin (BTC) price since January 2024. Source: TradingView.
Meanwhile, as evident in the chart above, bitcoin remains in a long phase of lateral and slightly bearish consolidation that has been going on for six months since it marked a new all-time high. According to Glassnode, this dynamic is reminiscent of the period between late 2019 and early 2020 before a strong bullish trend.
Although, in this period of consolidation, the profitability of new investors has been challenged, their loss-making sales have been declining. Furthermore, its magnitude, which can be seen in the graph, is low compared to previous correction periods, such as 2019-2020.
Trend of confidence of new investors, according to the magnitude of the losses realized (red). Source: Glassnode.
“New investors are showing resilience, seen in realized losses of relatively small magnitude, suggesting confidence in the overall bullish trend,” highlights Glassnode.
Bullish Bitcoin Investor Sentiment Shows Strong
For the analyst firm, “the confidence of new investors in the market has been remarkably solid.” “This paints a picture of a market that has cooled since the excesses seen in March, without breaking the sentiment of many new investors in bitcoin,” he concludes.
With this panorama, It is key that investors continue to refuse to sell their currencies in order to stimulate the rise in pricesince this is determined by the law of supply and demand. The expectations for increased liquidity that enable lower inflation and interest rate cuts in several countries seem to be motivating this scenario.
According to Glassnode, the current price rally could reach technical significance if it manages to stay above the moving average of 200 days at USD 63,900. The reason for this is that this line usually works as support in uptrends.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
