Keeping Your Eyes Open for On-Chain Trends That May Emerge.
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Bitcoin will rebound after
the current bearish impulse ( now $21,922 ), end up in a lower high,26K(retest
) Higher at 28K ,correct on 15th June to $20 K — Bulls will
support to enter a very short consolidation phase until mid September ,
unless the War stopped to boost reversal rather the bearish sluggishness may
drag into the Inflation Winter .
Full recovery seems only
likely in 2023 ..but we will see some cryptos full disrupted and may
disappear in coming weeks ( let hope they do not pull the market into Ultimate
FEAR )
Bitcoin’s price fell below
the important support level of $22,000, breaching below a trading range that
had maintained for the previous week. The fall is occurring at the same time as
a widespread sell-off on financial markets throughout the world, which caused
the Dow Jones Industrial Average to experience its largest one-day point
decline since. Some market experts also blame Crypto fanatics offloading their
stock for the 15th June Fed’s Meeting, of which wall street speculates 100
points hike during the hawkish monetary policy, adding extra sell pressure to a
market that is trying to ramp up for a recovery bounce.
The whales, on the other
hand, seem to be unfazed by the recent price drops and market turbulence. Large
holders purchased all of the cryptocurrency that was put up for sale during
this bearish crackdown and stocked up on as many coins as they could in the
$22,600 zone. This is the most significant question that has to be answered
right now.
When trying to determine if
pessimistic or bullish attitudes are prevalent, the following six on-chain
measures should be given the greatest consideration:
- Supply and Demand on
Cryptocurrency Exchanges
- Whale Unloading and
Accumulation
- Dormant Flow in the
Entity
- The Behavior of
Investors With a Long-Term Perspective
- Statement Regarding the
Fear and Greed Index
- Hodler’s Adjustments to
His Net Position
- Net Unrealized Profit or
Loss
Lets look at the following
only ;
Whale Accumulation
The behavior of whales is the single most significant indication. If we take a
look at the addresses of the whales that have more than 1,000 Bitcoin, we can
discover that they purchase any Bitcoin on average. They cleared their stock
gradually over the course of the previous two months so as not to startle the
market, and the company is currently on a purchasing binge.
However, the bigger whales
that have more than 50,000 BTC in their addresses have been buying, which has
led to the maximum bullishness for this indicator as well. ,they now want
a rebound for the 14th of June and anticipate the White House to be releasing
some news.. as N.Pelose appears start taking action on the Dows for some nice
takes this week.. It seems like she is all buckled up and ready to go.
2. Available Inventory on
Markets
The supply on exchanges is the second most significant indication since it
displays the number of holders who are shifting their coins to exchanges in
order to sell them. The value of this indicator is now at a record low, which
indicates that bullish sentiment is at its highest.
3. Dormant Flow in the Entity
The entity dormant flow is
another crucial indication that reveals how many addresses have just been
holding on to their Bitcoin and have not sold any of it. These numbers are also
quite close to all-time record lows.
4. An indicator that takes
into account both fear and greed
The Fear and Greed index is a highly helpful indicator for determining where
markets have bottomed out and where they are now trading. It has once again
reached its all-time low, and it is now trading at its highest level of
bullishness.
5. Addresses under the
Circumstance of Loss
We have now reached an
all-time high for the number of addresses that have been misplaced. This has
only happened once, during the Covid-panic collapse in 2020, which occurred at
the all-time low of the previous five years and resulted in the loss of almost
24 million addresses. This last week, the sum was exceeded well above what was
expected.
6. The Behavior of Investors
with a Long-Term Perspective
This statistic examines the behavior of long-term investors, and it reveals
that such investors have been purchasing Bitcoin in large quantities ever since
the price of Bitcoin has been plummeting around its prior maximums.
7. NUPL The Net Unrealized
Profit/Loss is at its lowest level since May, when it touched $32,000 and then
rose to $37,000. NUPLs look at Net Unrealized Profit/Loss.
As can be seen, each and
every indication points to a bullish outcome, with the majority of them
pointing to an exceptionally bullish outcome. Bitcoin’s price has fallen from
$37,000 to $22,000 in the last month , and there are a number of factors
that contributed to this drop.
“ Buy the rumors, Sell the
News ” is killing the market , since prices are expected to go downward.
However, we have also seen
that immediately after announcing the increased interest rates in the middle of
June, Bitcoin is anticipated to plummet to a new low again. This took place
last month in May 2022 . As the market is quite close to reaching its
bottom at this point, this might be the earliest day on which a rebound could
occur.
This might provide us with a
prolonged pump from June through September, the next future expiration date,
which may drive the price of Bitcoin to a much higher level but as explain, we
are expecting an Inflation Winter ,so Bulls will support to enter a very
short consolidation phase until mid September , unless the War stopped to
boost reversal rather the bearish sluggishness may drag into the Inflation
Winter
This suggests that
cryptocurrency markets might have yet another large surge over the next couple
of months, but then begin to fall once again around the middle of July, in the
middle of August, and in the middle of September.
However, despite the fact
that I would want to live in the fantasy of “Bitcoin Going to the Moon,” the
reality is that nobody knows for certain what will happen, other than the fact
that we will either witness it moving up, down, or sideways.
Therefore, the best
course of action for you to take is to use a variety of approaches, to
diversify your exposure to risk, and to maintain a watchful eye for developing
patterns on the chain. Last but not least, if you still want to accumulate in
order to establish a position, you should do it gradually so that you are
prepared when the trend begins to resume its previous direction.
#Disclaimer Note : This
publication is not intended for use as a source of any financial , money making
legal, medical or accounting advice. The information contained in this guide
may be subject to laws in the United States and other jurisdictions. We suggest
carefully reading the necessary terms of the services/products used before
applying it to any activity which is, or may be, regulated. We do not assume any
responsibility for what you choose to do with this information. This article is
not meant for financial advice , Use with your own judgment.
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