bitcoin And cryptocurrency Popular crypto analysis platform that draws attention with its analysis of the market CryptoQuantevaluated the price increase that Bitcoin has experienced in recent days.
BTCStating that the coin appears in the middle of a bull market, CryptoQuant said that a number of reliable indicators such as CryptoQuant’s On-chain P&L Index and its cross-exchange flows support the argument that Bitcoin is in a bull market.
Stating that despite these arguments, investors should be careful, the platform stated that considering the rapid increase in the value of Bitcoin in a short time, the possibility of price correction should not be ignored.
“Bull/Bear Market Cycle” Stating that the indicator shows an overheated BULL zone, CryptoQuant said that this indicator actually strengthens the need to be even more cautious against a possible correction.
Arguing that in addition to this indicator, 4 on-chain metrics strengthen the possibility of a correction, CryptoQuant continued his statement as follows:
“Actually, the Bullish/Bearish Market Cycle indicator shows an OVERHEATED BULLISH zone (the line turns red). This further reinforces the need to be cautious.
We have 4 on-chain metrics that shed light on the recent Bitcoin surge.
1- Short-term BTC investors are profiting with a notable profit margin (7.6%), the highest since November 2021, when Bitcoin was trading at $64,000.
2- As the Bitcoin price approached $ 28,000, there was a significant increase in BTC inflows to the stock markets, reaching the highest levels in 2023.
3- Bitcoin miners also contribute to these entries.
4- Finally, a significant proportion (33%) of Bitcoin flowing to exchanges came from large owners, namely whales. This shows that whales have been dominating the stock market entries lately. “
Although CryptoQuant says that there may be a possible correction in Bitcoin, looking at the Bull/Bear Market Cycle chart it added, it is seen that BTC experienced sharp rises as it passed from the yellow zone (bull) to the red zone (extremely bullish).
If a similar situation occurs, investors waiting for a correction may stay out during this rise.
Is Bitcoin in a Bull Market?
4 On-chain Metrics Reveal Recent Activity and Potential Price Correction
🧵👇— CryptoQuant.com (@cryptoquant_com) March 22, 2023
*Not investment advice.
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