CryptoQuant: Bitcoin is currently at a long-short turning point! Coin prices may be about to hit bottom

This site (120btc.coM): Analysis by cryptocurrency research institution CryptoQuant shows that Bitcoin is currently at a "long-short turning point". On the one hand, multiple indicators on the chain are releasing "down signals" at the same time; on the other hand, Bitcoin is at a "long-short turning point". The influx of buying orders from "big whales" has accelerated, which usually means that the price of Bitcoin is about to bottom out.

The current trading price of Bitcoin is about US$57,700. Although it has rebounded from last week's low of US$53,600, it is still in the "technical downward trend" since hitting a historical high of US$73,800 in March, and has continuously traded at US$71,300, A "lower high" was formed at $63,900.

The negative indicators have emerged one after another

According to data from CryptoQuant, Bitcoin’s “Profit and Loss Index” is currently hovering near its 365-day moving average, which usually indicates that a “major correction” or “the beginning of a bear market” may be coming, and the The previous "downward cross (death cross)" in the index in May and November 2021 foreshadowed the subsequent deep retracement.

In addition, CryptoQuant’s Bitcoin “Bull and Bear Market Cycle Indicator” is also approaching the key level that indicates “falling into a bear market.” Analysts pointed out: “If the price falls further, Bitcoin may turn into a bear market. "

At the same time, the stagnant growth of Tether's (USDT) market capitalization also shows that Bitcoin may not be able to form a strong rebound, because historical gains are almost synchronized with the increase in stablecoin liquidity.

CryptoQuant reports that as stablecoin liquidity growth has not yet fully recovered, it may take some time for Bitcoin to bottom out and restart its upward trend.

Multiple bullish factors intertwined

Although many indicators have released danger signals, Bitcoin is still supported by bullish factors, and there is still an opportunity to turn danger into safety.

According to CryptoQuant, just as Bitcoin is falling sharply, "big whales" are also frantically increasing their purchases. The speed is the first time since April 2023. In the past month alone, the holdings of large players have Volume increased by 6.3%.

CryptoQuant analysts pointed out that when Bitcoin exceeded $70,000 in early June, long-term holders made huge profits but later also suffered some losses. Even so, their willingness to sell was still not high, adding: " This may be an early sign of Bitcoin hitting bottom. "

On the other hand, the German authorities' large-scale Bitcoin sell-off seems to have come to an end. In January this year, the police investigated the case of pirated film and television paradise "movie2k.to". Nearly 50,000 Bitcoins were seized and assets were liquidated last month, with only 15,000 Bitcoins left for sale.

In addition, other bullish factors include the upcoming listing of the Ethereum spot ETF and the US stock index that has historically been highly correlated with Bitcoin. The market is still bullish.

The above is the detailed content of CryptoQuant: Bitcoin is currently at a long-short turning point! Coin prices may be about to hit bottom. For more information, please follow other related articles on the PHP Chinese website!