- According to a CryptoQuant expert, the price of bitcoin may have already reached a local bottom because big sellers have already realized their losses and used up all of their selling strength.
- Additionally, they provided a list of several bitcoin valuation metrics that point to continued upward price trend for the largest global digital asset in terms of market value.
Analysts at CryptoQuant claim that after rising to a high of nearly $66,000 earlier this week, the price of bitcoin appears to have bottomed out.
According to Thursday’s CryptoQuant Weekly report, holders of the digital currency saw their biggest realized losses to yet in 2024 as a result of Wednesday’s sharp decline in price, which brought it down to about $55,000.
Owners of Bitcoin experienced losses of $2.5 billion over the course of two days last week, but there was little profit-taking in comparison to March. According to the CryptoQuant researchers, realizing significant losses is usually an indication of seller surrender and is connected to price bottoms.
According to the CryptoQuant research, unrealized losses for bitcoin traders last week hit levels not seen in almost two years.
According to the experts, traders’ unrealized margins are at -5.7% as opposed to a low of -17% last week, which was the worst since just after the collapse of the FTX exchange in November 2022.
As we’ve seen this past week, prices have historically bottomed out when traders’ profit margins reach extraordinarily negative levels.
Analysts predict that prices will rise
The study also noted that a number of important benchmarks for bitcoin value have recently been breached, indicating a localized price bottom and more upward price momentum for the largest digital asset in the world by market capitalization.
Three chart indicators were provided by the CyptoQuant experts, indicating that the price of the largest digital asset by market capitalization has recently rebounded and may continue to do so.
The Bitcoin Profit & Loss (P&L) Index passed over its 365-day moving average, the Bull-Bear Market cycle indicator crossed over its 30-day moving average, and this was the second time this year, the Metcalfe price valuation bands supported prices, according to CryptoQuant researchers.
Stablecoin liquidity issues continue to prevent a significant price increase
The study did point out that the liquidity of stablecoins is still not increasing swiftly enough to sustain a full-fledged bull run. Stablecoin liquidity is a prerequisite for a long-term bitcoin price increase, the analyst stated.
According to the CryptoQuant analysis, USDT’s monthly market cap increase is still very close to zero, even with some encouraging movement in the stablecoin market capitalization. This is reducing the likelihood of a bigger bitcoin price increase, the research stated.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
