Altcoins
Bitcoin (BTC) Bulls and Bears in a Close Fight, Will Altcoins Lead the Next Rally?
As Bitcoin Price Reaches Its New an all-time high of $70,000 The biggest question in the investment community on Friday is whether this rally will continue. At press time, BTC was facing a partial retracement, currently trading at $68,423 with a market cap of $1.325 trillion.
Bitcoin bulls and bears in a tight fight
Renowned crypto analyst CrediBULL crypto has highlighted notable dynamics in the Bitcoin market, shedding light on the ongoing battle between spot buyers and passive sellers.
According to the analysis, there was a significant influx of spot bids, amounting to around $700 million worth of Bitcoin purchases within a narrow price range. Despite this aggressive buying activity, the price of Bitcoin has struggled to make significant progress, with passive sellers currently capping the price.
The key question posed by CrediBULL crypto is which side will exhaust its resources first: passive sellers or active buyers. While open interest (OI) remains stable, the analyst suggests that current market dynamics primarily involve spot buyers and sellers, with leveraged traders largely watching on the sidelines.
Additionally, financing rates in the market are relatively low, indicating a healthy business environment. CrediBULL crypto expresses optimism about the potential for a multi-thousand dollar upside if active buying pressure persists and overwhelms passive sellers. Bitcoin ETFs continued to buy strongly with BlackRock IBIT reaching new highs with $12 billion in assets.
However, if sellers maintain control, any potential market decline should be limited in magnitude. With minimal leverage in the market due to the lack of open interest, significant downside liquidations are less likely.
In conclusion, CrediBULL crypto underlines the general trend of Bitcoin price appreciation over time and advises investors to view dips as buying opportunities, anticipating a possible upward movement in the market.
Bitcoin growth cycle may end in 150 days
On-chain platform CryptoQuant highlights Bitcoin trends using the aSOPR metric. The adjusted output profit ratio (aSOPR) represents the ratio of spent outputs (those existing for more than an hour) to profit over a specific time window. This adjustment is made by excluding coin movements that existed for less than an hour.
When the value of aSOPR is greater than “1”, it suggests that more investors are selling their assets at a profit. Conversely, values below “1” indicate that more investors are selling at a loss.
Looking at data from past cycles, CryptoQuant Remarks that growth phases generally last between approximately 83 and 387 days. Taking the midpoint of this range, the average duration rises to approximately 235 days. Based on the current trend, with the current growth period having lasted 138 days, this suggests a potential scenario where the Bitcoin growth cycle could end in the next 100-150 days.
Other market analysts predict that once the Bitcoin growth cycle stops, the altcoins will run the show for the next leg of the broader market rally.