Categories: Market

Crypto this week June 4th – July 10th (market, BTC …)

Market perspective

Another week has passed that quickly, hasn’t it?

With Bitcoin’s sideways rate during this time, you must be bored, right? Presumably from a short-term technical point of view, Bitcoin’s movement in the zone from 29,000 to 42,000 will continue in the coming months. So let’s take a closer look at the other parameters and soften the bumps in these times.

1. Puell Multiple. display

Puell Multiple was founded by David Puell in March 2019 and studies market cycles from a mining revenue perspective. This metric looks at the supply side of the bitcoin economy – bitcoin miners and their earnings. Bitcoin miners are often seen as forced sellers because they have to cover the fixed costs of mining equipment in a market with extremely volatile prices.

As a result, the revenue they generate can affect the price of Bitcoin over time.

You can see the Puell Multiple is entering the green zone as in March 2020. If you believe in Bitcoin, now may be the time to accumulate more. The opportunity to buy Bitcoin now is to take advantage of it in the coming months as the price continues to climb towards the $ 100,000 mark.

2. Long term owners

Since the beginning of June 2021, when extreme fear pervaded the market, we have seen fairly classic behavior again in such situations. It was the long-term holders of Bitcoin who began to accumulate more.

On the other hand, the short-term holders of Bitcoin have started selling again.

It always does this in the same way and it helps you understand why there is always the same group of people who have fully benefited from the Bitcoin price increase. These people are simply people who look far beyond you and act when people are overly fearful.

3. Funding rates

Funding rates represent traders’ sentiment towards the positions they are taking in the perpetual swap market. A positive financing rate means that many traders are betting up and that the “long” traders pay the “short” traders the financing.

A negative funding rate means that many traders are betting on a decline and short traders have to pay to fund long traders.

If we look at the funding prices of all the exchanges, we can see that they are slowly moving out of the negative zone.

4. Bitcoin Stock-to-Flow

In the Bitcoin world, the stock-to-flow model is extremely popular. The repeated confirmation since its introduction has further increased its reliability. However, the recent slump in Bitcoin price has generated a lot of criticism.

For some, this will be proof that it is no longer working well.

However, this model cannot foresee such a brutal event as the Bitcoin ban from China, which will be implemented in a few weeks. In fact, in the weeks and months ahead, we need to see if Bitcoin price returns to what the stock-to-flow model predicts.

For those who still believe in this pattern, and there are many of them, you should carefully watch this chart, which highlights the deviation between the current Bitcoin price and the range predicted by the stock-to-flow model. This deviation has just reached its lowest point. This is a new signal that Bitcoin is extremely undervalued right now. The opportunity to accumulate more for big profits in the future.

5. Bitcoin Liquid Supply Ratio

As the price drops, the big players are accumulating Bitcoin to prepare for the extraordinary months to come.

This further confirms that the majority of Bitcoin sales during the recent decline came from newcomers to the Bitcoin world. These investors are often seen as weak hands. By selling Bitcoin at a loss, they unwittingly allowed those in power to take advantage of it.

On your and my level, it is clear that it is in our best interests to side with the strong.

epilogue

Bitcoin has given many people stability in an increasingly insecure world today. That is why more and more billionaires and high-ranking investors are joining the Bitcoin revolution.

However, in the short term, you cannot have a great guarantee of Bitcoin’s price. To benefit from Bitcoin, you need to take a long-term perspective by showing full confidence in its revolution.

And if not, you should know that people with strong hands don’t mind doing it alone. Do you want to let them benefit from it alone and without you?

ATTENTION: This is not investment advice, I am just giving a perspective for reference so please think twice before investing your money in the cryptocurrency market.