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June 16, 2024
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Why is Bitcoin Trading Sideways; This is When it May Trigger a Gaint Move!

The post Why is Bitcoin Trading Sideways; This is When it May Trigger a Gaint Move! appeared first on Coinpedia Fintech News

The Bitcoin price continues to trade sideways just above $27,000 as the bulls and shorts find it pretty difficult to break the impasse. Ever since the price marked its monthly high close to $30,000, it has been trading within a narrow descending triangle. Moreover, the price has been trading along the lower support of the triangle, attempting very hard to trigger a fine rebound. 

Regardless of the trend, the trading volume has been maintaining lower levels, suggesting that fewer traders were involved in intraday selling and pulling higher. Moreover, all the technical indicators pointed toward the ongoing conflict of biases among traders. Alongside the same number of buyers and sellers, the next price action for Bitcoin remains unsure. As a result, smooth price movements in the Bitcoin market are possible only in cases of extreme volatility caused by major events. 

However, irrespective of the prevailing conflict between buyers and sellers, Bitcoin is displaying enough strength and flashing signals to undergo a bullish breakout soon. As per the data from Glassnode, a popular on-chain analytical platform, the star crypto is at the edge of a massive explosion.

Exchange Reserves Dries Up

Exchanges always remain the core of any BTC trade, and the balance on the platform can be considered an important indicator that sheds light on volume, awareness, demand, and investor confidence. We can see a structural decline in the balance over the exchanges that dropped from a peak of around $4.2 billion in May 2021 to a low of $343.4 million as of now with a 91.8% decline. 

Also Read: Bitcoin News: BTC Price Might Take A Major Hit In Coming Days, Here’s Why

The Unrealised Profit and Loss are at the Lowest Point

The realized profit and loss is very useful for accessing network utilization as it provides insight into the capital flows in or out of the asset. Currently, both realized profit and realized loss are trading at levels not seen in the past 3 years. This suggests that the majority of the holders with large profits or losses are unwilling to sell or spend. 

Bitcoin MVRV Ratio Rises Up

The MVRV ratio is nothing but a comparison between the market value or capitalization and the realized value or capitalization of the token to get a fair value. The recent rally above $30K raised the MVRV to a value of 1.21, indicating a rise of 21% in unrealized profit levels. Currently, the value has slightly dropped, but the unrealized profit continues to prevail within the market. 

Traders Continue to Hold Bitcoin 

The bitcoin price has remained sloppy since the beginning of the year, with no major price actions. Despite the bears continuing to display their dominance, the BTC supply held for longer than a year, or the dormant supply continued to mark new highs every new day. Supply last active for 1+ years soars by 68%, 2+ years by 55.2%, 3+ years jump by 40%, and 5+ years rise by 28.9%.

Bitcoin Long-Term Holder Supply Marks New Highs

This indicates the long-term holder supply, meaning the tokens held for more than 155 days, has reached a new ATH of 144.46 million. This indicates that the tokens acquired immediately after the FTX collapse have been maturing and slowly entering the ‘long-term hold’ status. 

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