Why Bitcoin’s Calm Rally Could Be a Setup for a Massive Breakout, Analyst Reveals
The post Why Bitcoin’s Calm Rally Could Be a Setup for a Massive Breakout, Analyst Reveals appeared on BitcoinEthereumNews.com. Bitcoin has returned to an upward trajectory, with the asset posting a 1.7% gain in the last 24 hours to reach $109,505. This marks a 4% increase in the past week, placing the cryptocurrency less than 2% below its all-time high of $111,000 set last month. The move follows a period of subdued market activity, with recent gains occurring in a relatively quiet trading environment. Analysts have looked into on-chain indicators for signals of whether the current price action is sustainable or approaching overheated levels. Particularly, unlike previous rallies driven by sharp price spikes and speculative retail demand, the latest growth appears more measured. This has prompted the assessment of metrics such as Binary Coin Days Destroyed (CDD), MVRV ratio, and exchange premium indexes to gauge underlying investor behavior and sentiment. Bitcoin Long-Term Holders and US Demand Drive Quiet Accumulation According to an analysis published on CryptoQuant’s QuickTake platform by contributor Avocado Onchain, Bitcoin’s current rally is taking shape under relatively stable conditions. The analyst points to a declining 30-day moving average of Binary CDD, a metric that tracks the spending behavior of long-term holders. The decrease suggests that these holders are not yet exiting the market, indicating a continued confidence in the asset’s potential for further gains. Another notable indicator cited in the analysis is the Coinbase Premium Index, which measures the difference between Bitcoin prices on US-based Coinbase and other global exchanges. This premium is increasing and nearing levels observed during Bitcoin’s prior peaks in March and December 2024. While elevated premiums can be a warning sign of overheating, Avocado notes that the Korea Premium Index remains low, suggesting muted activity from retail traders in Asia. This balance implies that institutional buying pressure, particularly from US-based investors, could be driving the recent momentum. In addition, the MVRV ratio,…
The post Why Bitcoin’s Calm Rally Could Be a Setup for a Massive Breakout, Analyst Reveals appeared on BitcoinEthereumNews.com.
Bitcoin has returned to an upward trajectory, with the asset posting a 1.7% gain in the last 24 hours to reach $109,505. This marks a 4% increase in the past week, placing the cryptocurrency less than 2% below its all-time high of $111,000 set last month. The move follows a period of subdued market activity, with recent gains occurring in a relatively quiet trading environment. Analysts have looked into on-chain indicators for signals of whether the current price action is sustainable or approaching overheated levels. Particularly, unlike previous rallies driven by sharp price spikes and speculative retail demand, the latest growth appears more measured. This has prompted the assessment of metrics such as Binary Coin Days Destroyed (CDD), MVRV ratio, and exchange premium indexes to gauge underlying investor behavior and sentiment. Bitcoin Long-Term Holders and US Demand Drive Quiet Accumulation According to an analysis published on CryptoQuant’s QuickTake platform by contributor Avocado Onchain, Bitcoin’s current rally is taking shape under relatively stable conditions. The analyst points to a declining 30-day moving average of Binary CDD, a metric that tracks the spending behavior of long-term holders. The decrease suggests that these holders are not yet exiting the market, indicating a continued confidence in the asset’s potential for further gains. Another notable indicator cited in the analysis is the Coinbase Premium Index, which measures the difference between Bitcoin prices on US-based Coinbase and other global exchanges. This premium is increasing and nearing levels observed during Bitcoin’s prior peaks in March and December 2024. While elevated premiums can be a warning sign of overheating, Avocado notes that the Korea Premium Index remains low, suggesting muted activity from retail traders in Asia. This balance implies that institutional buying pressure, particularly from US-based investors, could be driving the recent momentum. In addition, the MVRV ratio,…
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