Although the cryptocurrency market is in a downward trend, with many coins down 10-20%, Glassnode analysts suggest that cryptocurrencies still have the potential to continue to rise.
1. The return of positive funding
During the fall in the price of Bitcoin futures funding briefly became negative, but quickly returned to the positive zone. Positive funding means that most market participants believe that growth will continue.
However, funding is still not as high as it was in April or May. This means that traders are using less leverage now than they were back then. Consequently, the market is less volatile.
2. Old Coins Are Not Selling
One of the main signals that traders should look for during sales is the age of the coins that are being sold on the market. When whales decide to take profits, they sell old coins.
During the last sale, coins that had not moved for a long time remained in their addresses and were not transferred to exchanges. This means that long-term holders do not want to sell at current prices.
3. Bitcoins held by long-term holders
In addition to the previous signal, the amount of Bitcoin held by long-term holders has increased since September 2020. Currently, holders hold 79.5% of the entire BTC supply.
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According to u.today
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