Bitcoin price has fluctuated both up and down over the past week. On September 27, the crypto king saw some signs of recovery. The excitement didn’t last long, however. After peaking at $ 44,300, the daily candle closed at $ 42,100. In fact, at the time of writing, the price has even gone down a bit.
BTC Price Chart | Source: Tradingview
Market participants have two options in this phase.
First, they can side with longtime smart money supporters and feel relieved. Or watch out for the aggressive bears, who claim a long “sinking candle” for themselves on their way.
We leave speculation and tumultuous sentiment behind and here are a few key trends that will help investors make their choice.
Despite the market indecision, recent data suggests that the consolidation trend is picking up. At the time of this writing, some indicators show this.
The Coin Destruction Days (CDD) indicator usually peaks when large amounts of old coins are issued and declines during the accumulation period, HODL. At the time of writing, CDD hit a low of 150,000.
Compared to the past, the levels at the time of this writing are quite similar to those in the period of large-scale accumulation. This usually happens in the later stages of a bear market and the beginning of a bull market.
The source: Glass knot
In addition, the HODL wave chart also clearly shows the downward trend in young coins. By definition, this happens in parallel with the upward trend of the old coin. It basically means that the accumulation trend is dominant.
Even early buyers (from 2020-2021) still HODL. Even with FUD mining, China, and sell-offs, the aforementioned ancient coins haven’t moved.
The source: checkonchain.com
Extreme fear can be a sign that investors are too nervous. Relatively young coins (between 1 week and 6 months) are currently being issued. Overall, this is a good sign.
Cleaning up “weak hands” at this stage ensures that there are no major obstacles in the future. All in all, this means that the market will enter a strong rally and the likelihood of a large dump in the next period of volatility is very small.
Hence, owners who have seen similar trends in the past know what type of period will follow in the near future.
The source: checkonchain.com
Trends always paint a clear picture and subtly signal investors what to expect in the future. As a result, investors no longer have to worry about individual issues in the chain and data points that are too obvious to be convincing.
Given general investor sentiment, it is fair to say that the red candles on the chart are temporary and will soon be overshadowed by the green candles in the coming days.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Minh Anh
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
The Genesis settlement prohibits Genesis from operating in New York and establishes a victims' fund…
Brazil Central Bank is making significant strides in the supervision of encrypted assets and virtual…
Apple's recent unveiling of the Vision Pro headset has sparked widespread debate and intrigue, marking…
Uniswap Labs and Across has unveiled its latest initiative aimed at enhancing cross-chain interoperability within…
OKX's customer experience team has shed light on the intricacies of its token listing process.
The judgment in the COPA vs. Craig Wright lawsuit highlights Wright's repeated lies and fabrications.
This website uses cookies.