Bitcoin Market Now In ‘A Risk Zone’ �?What’s Happening?

Leverage is a tool that allows traders to control substantial positions with a relatively small amount of capital. While leverage helps traders and investors bolster their potential profits, it also opens them up to significant risks, especially when the market volatility is elevated.

In a recent Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Crazzyblockk revealed that there has been increased leverage use amongst Bitcoin market participants. This on-chain observation is based on the Estimated Leverage Ratio (ELR) metric, which measures the ratio of open interest in futures contracts to the coin reserves on exchanges.

Crazzyblockk noted that the reserves of some large-cap stablecoins are also considered in the calculation of the Estimated Leverage Ratio. “This is based on the concept that stablecoins have been increasingly used as collateral for derivative trading in recent years,�?the analyst added.

Furthermore, the Bitcoin derivatives market has now seemingly entered a risk zone due to the sharp increase in the leverage being used by market participants. According to the Quicktake post, this implies that the market is susceptible to spontaneous price movements in any direction. Hence, short-term traders might want to approach the market with caution.

Has BTC Price Established A Local Top?

As of this writing, the price of Bitcoin stands at around $68,400, reflecting no significant change in the past day. According to data from CoinGecko, the premier cryptocurrency is up by over 8% in the past week.

In a separate Quicktake post, an analyst revealed that the price of Bitcoin might be readying for a brief correction after printing a local top. This analysis is based on the increasing non-realized profits of Bitcoin traders in recent weeks.

Analyst Says Bitcoin Price To Face Brief Correction �?What Next?

In a recent post on the X platform, crypto analyst Ali Martinez put forward an interesting prognosis for the price of Bitcoin, saying that the premier cryptocurrency might be set for a brief correction in the short term. According to the pundit, the “Tom Demark�?(TD) Sequential has flashed a sell signal for the BTC price on the daily chart.

The TD Sequential is an indicator in technical analysis used to identify potential points of trend exhaustion and price reversal. This technical analysis tool comprises two major phases; namely the TD Setup phase and the TD Countdown phase.

In recent days, there have been heavy discussions around the price of BTC revisiting and perhaps surpassing its current all-time high. Nevertheless, Martinez advised investors to anticipate the Bitcoin price experiencing a brief pullback “before higher highs.�?/p>

Bitcoin Price At A Glance

As of this writing, the price of Bitcoin stands at around $68,272, reflecting a mere 0.5% dip in the past day. According to CoinGecko data, the premier cryptocurrency is up by nearly 9% in the last seven days.

Golden Cross Could Push Bitcoin Price Past $73,737

In a recent Quicktake post on the CrypoQuant platform, an analyst with the pseudonym Yonsei_dent revealed that Bitcoin price might be forming an upward structure. This bullish prognosis is based on the growth rate of active addresses, which represents the number of unique addresses showing significant activity on the Bitcoin network.

In their latest analysis, the CryptoQuant analyst utilized a 30-day moving average (30DMA) and a 365-day moving average (365DMA) to capture the growth momentum of the Bitcoin active addresses. As shown in the chart below, the 30-day moving average has witnessed a sharp spike over the past month and appears to be approaching the 365DMA.

According to Yonsei_dent, the Bitcoin price could experience a positive shift in bullish momentum if the 30DMA eventually reaches the 365DMA and crosses it to the upside (making a golden cross.) In crypto terms, a golden cross refers to a bullish chart that is characterized by a relatively short-term moving average crossing above a long-term moving average.

‘Bitcoin Is Establishing An Upward Structure’ �?Here’s How

As of this writing, the Bitcoin price is about 7% adrift of its record-high level. According to data from CoinGecko, the premier cryptocurrency is valued at $68,540, reflecting an over 2% increase in the past day.

According to Yonsei_dent, the price of Bitcoin has been forming progressively increasing highs and lows since July, suggesting an “upward market structure.”�?/p> However, It is worth noting that these highs and lows appear to be printing a “rising wedge�?pattern, which could be bearish for the Bitcoin price. ]]> 648805 //shenyangcang.com/news/dogecoin/dogecoin-and-shiba-inu-social-dominance-at-5-month-high/ Sat, 19 Oct 2024 09:00:48 +0000 //shenyangcang.com/?p=648801 Over the past week, blue-chip assets like Bitcoin (BTC) and Ethereum (ETH), have been major topics of discussion in the cryptocurrency space �?and rightfully so �?after a strong positive performance week. Meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have also enjoyed a fair share of the attention in the last seven days.

Will FOMO Sustain The Meme Coin Rally?

In a recent post on the X platform, Santiment shared that large-cap meme tokens have been drawing a great deal of social media attention in the past few days. According to the blockchain analytics firm, top meme coins like Dogecoin and Shiba Inu are seeing their most crowd discussion since May.

Top meme coins (DOGE, SHIB, etc.) [are] seeing [their] most crowd discussion since May (crowd FOMO may soon cause top).

Indeed, this positive shift in investor sentiment might signal renewed faith in the meme coin market. However, the increasing crowd hype is often a warning sign of a potential price top, as rising FOMO (fear of missing out) can dampen the momentum of developing price rallies.

Fear of missing out, commonly called FOMO, is a phenomenon where investors hastily purchase assets in high demand out of fear of forfeiting potential gains. While FOMO has been known to drive a coin to a higher value in the short term, excessive FOMO often leads to unsustainable upward trends and subsequent corrections.

Dogecoin Price At A Glance

$64,000 The Resistance Level To Watch: Analyst

In a Quicktake post on CryptoQuant, an analyst with the pseudonym ShayanBTC has put forward an interesting prognosis for the Bitcoin price in the short term. According to the crypto expert, $64,000 and $55,000 are two crucial levels that every BTC investor should watch over the coming days.

The UTXO age bands metric highlights the average price at which Bitcoin holders acquired their coins while considering how long they’ve held the assets. The most notable age bands in this metric are the 3-month to 6-month (short-term) cohort and the 6-month to 12-month (long-term) cohort.

Conversely, if Bitcoin can break above this realized price, it suggests growing bullish momentum, as new buyers are willing to hold even at higher levels.

As it stands, the price of Bitcoin seems set to test the resistance level and 3-6 month holders�?realized price of $64,000. ShayanBTC noted that a successful breakthrough above this price level could indicate further bullish momentum and potential resumption of the bullish trend.

Bitcoin Price At A Glance

As of this writing, Bitcoin is valued at $63,249, reflecting a mere 1.1% increase in the past day. According to data from CoinGecko, the flagship cryptocurrency is up by more than 2% in the last seven days.

In a September 23 post on X, crypto analyst Ali Martinez put forward an interesting prognosis on the current price action of Bitcoin and its future trajectory. According to the pundit, the premier cryptocurrency looked set for a bullish breakout �?albeit not in a straightforward move.

In his forecast, Martinez said that the price layout (at the time) could see Bitcoin fall to the $60,000 level and then make a comeback to $66,000. Following the recovery, a deep correction would see the market leader slump to $57,000 before rallying to a new all-time high of $78,000.

The space between these trendlines serves as the channel within which prices over a period. Typically, the formation of a descending channel suggests the persistence of a downward price trend and lower highs. Meanwhile, traders can use this pattern to identify optimal entry and exit points.

In a new post on the X platform, Martinez provided an update on the $78,000 forecast, confirming that the Bitcoin price dropped to $60,000 before jumping back to $66,000. Following the latest correction to around $59,000, the next move for the premier cryptocurrency seems to be the breakout rally to $78,000.

Contrary to general expectations, the price of Bitcoin has not exactly shined in the historically bullish month of October. However, this latest projection shows that the �?a href="//shenyangcang.com/bitcoin-news/bitcoins-path-to-80000-melt-up-in-q4-2024-details-inside/" target="_blank" rel="noopener ">Uptober�?month could just be starting for the flagship cryptocurrency.

Bitcoin Price At A Glance

As of this writing, the price of Bitcoin sits just beneath $63,000, reflecting a 5% increase in the past 24 hours. This latest rally represents a price recovery as the premier cryptocurrency has been under intense bearish pressure over the past week, falling as low as $59,000 at some point. According to CoinGecko data, Bitcoin is up by 1% in the last seven days.

Featured image created by Dall.E, chart from TradingView

Are Dogecoin Whales Positioning Themselves For A Bullish Breakout?

Prominent crypto pundit Ali Martinez took to the X platform to share an interesting on-chain insight into the activity of whales and other large investors in recent days. The relevant indicator here is the IntoTheBlock number of large transactions metric, which calculates the number of token transfers worth over $100,000.

The cohort of investors involved in this data point is the whales and institutional players, considering the magnitude of these transactions. Whales refer to entities (individuals and organizations) that hold substantial amounts of a particular cryptocurrency and, as a result, wield significant influence on the market dynamics.

According to Martinez, the number of large Dogecoin transactions has been steadily rising. A surge in large transactions often indicates that institutional players and whales are either accumulating ahead of a price upswing or distributing their assets. It is worth noting that the IntoTheBlock large transactions metric doesn’t offer enough insight into the direction of these transfers.

However, a recent data point revealed that Dogecoin whales (with at least $10 million) have bought over 1 billion DOGE (worth over $108 million) in one day.  While this confirms that the large holders have been accumulating, it leaves other investors wondering what they know.

DOGE Price At A Glance

As of this writing, the price of Dogecoin stands at around $0.1088, reflecting a mere 0.6% decline in the last 24 hours. According to data from CoinGecko, DOGE is down by more than 16% in the past week.

What Does This Mean For Bitcoin Price?

In a recent post on the X platform, crypto analyst Ali Martinez revealed $63,000 as the realized price for Bitcoin short-term holders, explaining the relevance of this level to the asset’s long-term health. For context, the short-term holder realized price is a metric that measures the average price at which short-term investors purchased their BTC.

When the spot value of Bitcoin is higher than the short-term holders�?realized price, it indicates that most recent investors are in the green. Typically, this encourages the traders to buy more coins, precipitating a positive market sentiment and potentially triggering an upward price movement.

According to Martinez, Bitcoin has been trading beneath the short-term holders�?realized price since June. With the current STH realized price at $63,000, the premier cryptocurrency appears to be at risk of further decline, especially in the short term.

BTC Holder Behavior Similar To 2016 And 2020

The overall outlook for Bitcoin’s price in the last quarter of 2024 has been quite positive. CryptoQuant revealed in its latest weekly report that the behavior of Bitcoin holders in the current cycle mirrors the 2016 and 2020 halving years, indicating a potential price growth for the market leader. 

4,000 Long Positions Liquidated On October 1 —�?What Next?

In a new Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Caueconomy discussed the impact of the recent liquidations of long positions in the Bitcoin futures market. According to the analyst, the ongoing liquidations have reduced the bearish pressure on the Bitcoin price.

For context, futures allow investors to speculate on the price of a specific asset (Bitcoin, in this scenario). A long position is taken when a BTC trader buys a futures contract, predicting the coin’s price to rise at a later date. The trader incurs a loss when the asset’s price falls below the purchase price specified in the futures contract.

According to data from CryptoQuant, more than 4,000 long positions were liquidated following the latest price decline on Tuesday, October 1, representing the second-largest liquidation event so far this year. Although liquidations reflect significant selling activity and investor losses, they can also signal pivotal shifts in market sentiment.

Bitcoin Price At A Glance

However, this single-day performance has not been enough to wipe Bitcoin’s 5% price decline over the past week. With selling pressure dropping and the positive price history in October, though, it seems like only a matter of time before the flagship cryptocurrency returns to $65,000.

Why Are Whales Taking Less Profit This Cycle?

In a post on the X platform, CryptoQuant CEO Ki Young Ju revealed that the Bitcoin whales have held onto their assets this cycle. As a result, the large investors have set the record for the least profit-taking compared to other cycles if the current bull run ends now.

Typically, when the Realized Profit Ratio of whales is high, it implies that a sell-off is likely ongoing, with the large investors believing that prices have peaked. On the other hand, a low Realized Profit Ratio often indicates a low level of profit-taking, meaning that investors are not cutting their losses or expecting further price gains.

The current on-chain data points to a trend where the large holders have taken the least amount of profits across any bull cycle. This could mean that the Bitcoin whales still have faith in Bitcoin’s long-term potential. Ultimately, this suggests that the current bull run is far from the end, and there is the possibility of the Bitcoin price uptrend resuming.

Bitcoin ‘Dolphin’ Addresses On The Rise Again: Santiment

In a post on X, Santiment revealed that the Bitcoin’s “Dolphin�?cohort, holding between 0.1 to 10 BTC, have been growing steadily over the past few months. The analytics reported that this tier of investors mostly sold for profit in the first half of the year.