Big Move Incoming? Bitcoin On-Chain Metric Suggests So
• Bitcoin on-chain metric suggests a “big move” is incoming, according to expert James Check.
• The sell-side risk ratio of Bitcoin is approaching an all-time low, meaning traders from both sides are exhausted after recent price action.
• Realized Profit and Loss metrics provide insight into the sentiment, capital flows, and behaviour patterns of BTC holders and suggest a reaccumulation phase for Bitcoin in the coming months.
Bitcoin On-Chain Metric Suggests “Big Move” Incoming
Analyst James Check of Glassnode has suggested that the on-chain data indicates that a large movement in the price of Bitcoin could be imminent. Check claims that the sell-side risk ratio of Bitcoin has reached all time lows, indicating that traders from both sides are exhausted after recent market activity.
Realized Profit and Loss Metrics
Check believes that realized profit and loss metrics provide insight into the sentiment, capital flows, and behaviour patterns of BTC holders. He believes these metrics can give us an understanding of where the market might be headed in terms of prices for Bitcoin over the next few months.
Bitcoin Price Action
At present, Bitcoin trades at around $26400 USD following dips from above $28000 USD. After struggling to break through resistance at $27600 USD, some experts believe it could flip to new support or receive fresh impetus to surpass its year-to-date high of $31000 USD.
Check also believes that Bitcoin could be entering a period of reaccumulation which usually lasts 12 months after a bottom (if indeed one has been established). This would mean some volatile action between $40000 USD and $22000 USD as traders look to reset their positions in anticipation for future growth.
Overall it appears as though Bitcoin may well be setting up for some big moves over the coming weeks or months depending on how things play out within the market itself. On one hand it could drop below current levels while on another it could reach new highs never seen before so investors should remain vigilant if they are looking to capitalize off any potential movements in either direction.