Bitcoin: BTC investors are confused about where the market is going
Listen to this article
The recent drop in Bitcoin (BTC) exchange reserves could plunge top-ranked crypto investors into turmoil. In fact, as observed by Maartunn, an analyst at CryptoQuant, over 60 BTC has left the reserve bank. She notes that all of these are out in just three days.
Furthermore, the analyst noted that it is the highest amount BTC has registered in months. Additionally, CryptoQuant revealed that BTC reserves, which stood at 2,305,182 on September 29, have decreased. In fact, after a significant drop, it has since depreciated to 2,266,865 by press time.
For one thing, a break-out could lead to a sell-off. However, Maartunn has a different opinion. The analyst claims that events like these lead to increased demand for BTC in the market.
By the way, it is possible that your statement is valid. With a lower coin supply on exchanges, it doesn't appear that investors are pressured to reduce their holdings.
Despite the determination to pursue holding, there are no clear signs that BTC is close to bottoming out. While current market conditions may not be favorable, Maartunn's claims of increased demand are well-founded.
Between possibility and despair
According to Glassnode, the number of addresses holding 0.01 BTC hit an all-time high (ATH). The online monitoring platform noted that the previous ATH was exceeded on October 1st. He also reported that the current ATH is up to 10,758,931.
Then other areas do not match the demand. Glassnode also revealed that the number of transactions, previously at a high of 286,503, has dropped to 241,812.
This suggests that BTC transaction deposits and withdrawals may not be as high as reported. In addition, the number of transactions may also need to be appreciated.
This means there is actually more interest in the entire market. As a result, investors could be torn between confirming a bottom or falling further.
Get up but be careful
Here, it is worth noting that another CryptoQuant analyst, MAC_D, suggested that the estimated level ratio (ELR) may have confirmed an increase in demand for BTC. However, he did have a warning about the ELR rising above its post time.
Further increases can lead to price inconsistencies as the ELR affects volatility and open interest. Therefore, he thinks that the balance between open interest and foreign exchange reserve cash flow will be more beneficial than harmful for BTC price.
At the time of writing, BTC is trading at $19,352. Its 24-hour trading volume is down 56%. Thanks to these findings, BTC investors hoping for a $20,000 gap may have to wait longer.
Oct 02, 2022