Bitcoin rally is in its infancy, according to key metrics
BTC’s bullish rally is still in an early stage, according to data from Glassnode, despite the crash in the cryptocurrency market. The price of Bitcoin (BTC) experienced a small correction on the day after the global stock market turned down.
The top cryptocurrency fell nearly 8% in the past 24 hours, retracing most of the gains it posted during yesterday’s March 3 rally.
Bitcoin rally is still in early or mid-stage
According to William Clemente, a cryptocurrency analyst, Glassnode’s reserve risk indicator shows that Bitcoin’s bullish rally is still in the early or middle stage.
As Clemente explains, reserve risk is defined as price / HODL Bank. The indicator is “used to assess the long-term trust of holders in relation to the price of the native currency at a given time.” Therefore, if the reserve risk remains relatively low compared to previous peaks, shows that Bitcoin is not in danger of approaching its cap.
Currently, the reserve risk of Bitcoin is at half the level observed in 2013, 2014 and 2017, when the price of Bitcoin plummeted by more than 50% and entered a bear market. Furthermore, despite Bitcoin’s weakness over the past 20 hours, it is performing well considering that the global stock market has seen a significant drop.
Kyle Davies, co-founder of Three Arrows Capital, noted that the global macro was sold, but Bitcoin has not seen a massive correction as a result. He said: “They should look for relative strength when others are weak. The global macro market fell yesterday and BTC was not even tickled.”
For example, major tech stocks and retail-favored stocks, such as Tesla, saw a big sell-off on March 3. As a result, most risky assets fell in line, showing general weakness in the global macro market.
The drop coincided with the increase in deposits on exchanges
Meanwhile, Ki Young Ju, CEO of CryptoQuant, warned of an increase in deposits on exchanges, as the price of Bitcoin fell below $ 50,000. When whales deposit Bitcoin on exchanges, it usually indicates an intention to sell. High net worth investors often keep their cryptocurrency holdings off exchanges.
Ki said: “Update: Small spike in average deposit across all exchanges priced at $ 52,000. It could cause a little drop. I’m not sure how much it could drop at this point.”
The combination of whales possibly selling Bitcoin on exchanges and the bleak outlook likely contributed to the drop in the price of BTC. However, in the longer term, the outlook remains bullish as the illiquid supply of Bitcoin continues to rise.
Lex Moskovski, CEO of Moskovski Capital, also noted that forks are increasing their positions in Bitcoin. As long as high net worth users and investors continue to hoard Bitcoin, the uptrend is likely to remain intact. Furthermore, Bitcoin’s market structure remains compelling as it surpassed the $ 46,000 level, establishing it as a new technical support.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.