As a seasoned crypto investor with several years of experience, I’ve seen my fair share of market volatility and price swings. The recent drop in Bitcoin (BTC) price to $53,500 was indeed disheartening, but as someone who has been through multiple market corrections before, I remain optimistic about the future.
As a Bitcoin analyst, I’ve observed a significant drop in its price down to $53,500 on Monday due to intense selling pressure. This sell-off was influenced by the German government’s actions and the repayment of Mt. Gox creditors. However, after yesterday’s crash, Bitcoin has bounced back, recovering to a current price of $57,500 as of this writing. Certain on-chain metrics indicate that Bitcoin remains strong, suggesting potential growth in the future.
Bitcoin Peull Multiple Flashes Bull Run Ahead
As a crypto investor, I find CryptoQuant’s use of the Bitcoin MFI (Money Flow Index) particularly valuable. This on-chain data provider employs this indicator, specifically called the Bitcoin MFI Peer Ratio or “BMF P Ratio,” to pinpoint the bottom of a bear market and signal the conclusion of a correction period during a bull market.
Historically, the Puell Multiple has experienced substantial declines during bull markets for Bitcoin, as seen in 2016 and 2020. These drops are indicated by the red circles on the chart. Miners’ profitability took a sharp turn for the worse during these periods, resulting in a steep decrease in this metric.
In 2024, I’ve noticed striking similarities in market trends that suggest we might be approaching the end of this bull market’s correction. Based on these observations, CryptoQuant anticipates that the third quarter will mark the beginning of a new bull run.
As a crypto investor looking back on the past month, I’ve noticed a significant wave of Bitcoin miner capitulation. The profitability for miners took a hit, plunging by an astonishing 7.8%. This drop in profits brought daily revenues down to $26 million – a far cry from the impressive $78 million we saw before the halving event in April.
BTC Holding Wallets Drop Amid Market Volatility
As an analyst, I’ve observed a noteworthy development in the Bitcoin network based on data from on-chain provider Santiment. Specifically, there has been a reduction of approximately 566,000 non-empty Bitcoin wallets since June 15, bringing the current total to about 54.09 million.
According to Santiment’s analysis, the recent decrease is a hopeful indication for patient investors, as it results from the selling pressure instigated by anxious and impulsive traders. This trend is commonly associated with market bottoms, which are typically fueled by fear, apprehension, and doubt (FUD). Previous occurrences of such patterns emerged in early January, potentially signaling promising buying opportunities.
According to Santiment, the 30-day and yearly MVRV (Market Value to Realized Value) indicators for Bitcoin currently sit in the red zone.
In simple terms, this situation signals a good buying chance, implying that while some traders are enduring losses, others are making acquisitions.
According to Santiment, the last occasion when both the MVRV (Major Volume Realized Price) ratios for Bitcoin turned negative resulted in a substantial 132% profit for investors who had purchased at that time.
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2024-07-09 15:26