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.
Subscribe to ForkNews in Telegram to stay up to date with news from the world of cryptocurrencies
According to u.today
You May Also Like
China is the future in crypto gambling
According to cryptocurrency expert Darin Oliver, the penetration of blockchain into all areas of life in China presents a unique opportunity for cryptocurrency gambling operators to create a powerful new financial industry.
BitKan: $3000 - profitability threshold for all rigs
According to the chairman of the board of the Chinese platform for over-the-counter cryptocurrency trading BitKan, Leon Liu, the current round of market decline began at the end of last year and will last at least another 12 months. Lew believes that the Bitcoin Cash (BCH) hard fork and hash battles are just one reason, there are many other factors to consider beyond what is visible on the surface.
