Is Bitcoin Entering a New Phase? Analysts Break Down Key Trends

Samuel Edyme

7 months ago

3 mins read

Is Bitcoin Entering a New Phase? Analysts Break Down Key Trends

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So far, the Bitcoin market continues to demonstrate resilience as it maintains its price above the $90,000 price market despite various factors influencing its price movements.

Amid this, a CryptoQuant analyst, aytekin466, recently shared insights into whether the cryptocurrency could face another significant price correction.

Are Major Corrections a Thing of the Past?

aytekin disclosed that with Bitcoin experiencing a maximum decline of 30% in its current cycle — notably during the “carry trade shock” in August — this marks a milder drawdown than previous cycles.

According to the analyst, the increasing presence of ETFs has contributed to stabilizing the market by mitigating drastic shakeouts. However, the dynamics surrounding BTC investment remain a careful balancing act.

The analyst noted:

Waiting for the next big correction to enter the market or add fresh capital might result in being late to the rally. On the other hand, being overly aggressive while the market is surging could be risky.

Mentioning that it is better to understand where the market stance is as of now, aytekin highlighted that current metrics, such as a positive Coinbase premium and the cooling off of the Spent Output Profit Ratio (SOPR), suggest a “healthy consolidation phase.”

Bitcoin spent output ratio metric. | Source: CryptoQuant

Moreover, funding rates have eased following recent price fluctuations, while miners show no urgency to liquidate their holdings. Stablecoin flows to spot exchanges are also at their highest levels this year, signaling active market participation.

aytekin wrote:

In conclusion, a correction could happen at any time without a specific reason, but the current situation doesn’t indicate a shift in momentum.

Further Growth In Bitcoin Price Expected?

Another CryptoQuant analyst, Darkfost, highlighted positive market signals from stablecoin activity and BTC netflows. The Exchange Stablecoin Ratio — comparing Bitcoin reserves on exchanges to stablecoin reserves — is in decline.

This trend indicates strong buying pressure as stablecoins for Bitcoin purchases increase while Bitcoin exchange reserves dwindle. In parallel, weekly Bitcoin netflows reveal consistent withdrawals from exchanges, suggesting a sentiment shift toward mid- to long-term holding among investors.

Bitcoin exchange stablecoin ratio. | Source: CryptoQuant

These metrics indicate a favorable market environment with strong demand and investor confidence.

Notably, the declining exchange stablecoin ratio aligns with a reduction in immediate selling pressure. At the same time, the accumulation of Bitcoin signals that market participants view the current environment as conducive to long-term growth.

Darkfost wrote:

These combined metrics, lower exchange stablecoin ratios and decreasing Bitcoin reserves, indicate a positive market environment. They highlight that demand remains strong and that investors are demonstrating confidence in Bitcoin’s potential

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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