Key Points
- Bitcoin’s upward trend is likely to continue, with reduced profit-taking volume.
- Market indicators suggest strong buying pressure and bullish sentiment for Bitcoin.
Bitcoin’s upward trajectory continues as the volume of profit-taking decreases. In the past day, Bitcoin has seen a growth of 1.76%.
Bitcoin has seen a strong surge in price over the last 48 hours. During this period, Bitcoin’s price jumped from a low of $89164 to a high of $97657.
Bitcoin’s Ongoing Upward Cycle
CryptoQuant analyst Dan believes that Bitcoin’s upward cycle is far from over, as indicated by the short-term SOPR. He asserts that aggressive short-term trading is not advisable at this stage as the upward cycle is still in progress.
Dan’s analysis of the short-term SOPR shows a consistent pattern. During market corrections, it transitions from red circles to green, dampening optimism about potential price rallies, only to see the market bounce back. A higher red circle indicates profit-taking by major whales, leading to deeper or longer correction phases.
Comparisons of current market conditions to those of March 2024 reveal a significantly smaller volume of profit-taking. This suggests that the current correction period may be shorter than the previous one, which lasted seven months. Given that the current correction has been ongoing for over a month, it is highly likely that the upward trend will resume in Q1 2025.
However, Bitcoin may see one or two sharp drops in the short term, causing the short-term SOPR to fall before another sustained uptrend. Consequently, short-term aggressive trades could be risky and should be approached with caution.
Bitcoin Market Indicators
While the above analysis provides a promising outlook, it is crucial to consider other market indicators. According to an analysis by AMBCrypto, Bitcoin continues to experience strong buying pressure, with the market remaining bullish.
Bitcoin’s taker-buy-sell ratio has remained above 1 for the past two days, indicating more buy orders than sell orders. This suggests that buyers are dominating the market, reflecting a strong accumulation trend.
Moreover, Bitcoin is seeing a resurgence in the number of active users and overall participants, as evidenced by a sustained drop in the NVT ratio over the last four days. A decrease in the NVT ratio indicates strong network demand, suggesting strengthening market fundamentals.
Bitcoin’s SOPR has stayed above 1 for the past six days, signaling strong market sentiment. Traders are willing to sell and reenter the market at higher levels, and profit-taking is not deterring buyers as demand remains strong.
In conclusion, Bitcoin continues to experience strong demand as buyers continue to establish new positions, reflecting strong bullish sentiments. If bulls maintain control of the market, Bitcoin could reclaim $98,800 and then attempt $100,000. However, a correction could see the crypto drop to $96,560.
