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After briefly falling to $90,000 earlier in the week, Bitcoin has rebounded strongly, rising above $95,000.
Bitcoin is currently trading at $95,224 and has posted gains of 7% over the past two weeks, indicating renewed bullish momentum.
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Key indicators highlight the best buying opportunities
As Bitcoin continues to rise, CryptoQuant, a prominent on-chain analytics platform, has participated Visions To key metrics that can help potential investors determine optimal entry points.
Drawing on historical data and market behavior, CryptoQuant highlights patterns of price corrections, short-term stockholders’ strategies, speculative bets, and trading volume indicators to guide investors in navigating Bitcoin’s ongoing uptrend.
According to CryptoQuant, historical bull markets have shown that price pullbacks are inevitable, even during periods of sustained growth.
For example, the 2017 bull market saw corrections of up to 22%, while the 2021 rally saw declines of 10% and 30%. The 2024 uptrend has already seen price pullbacks of 15% and 20%, suggesting that cyclical corrections may provide strategic buying opportunities.
The platform also emphasizes the importance of the short-term realized price metric, which reflects the average cost basis for new investors. This measure often acts as a crucial support level during bull markets, as short-term holders are more likely to buy shares at the breakeven price, promoting price stability.
Buy based on the short-term average cost to shareholders
The realized price for a short-term holder of a stock can be considered a buy-on-the-dip level during bull markets.
Investors tend to buy at breakeven, making this indicator a perception of price support. pic.twitter.com/mTDpuhaK8Y
— CryptoQuant.com (@cryptoquant_com) November 27, 2024
Additionally, CryptoQuant refers to “open interest flow,” a phenomenon in which speculative positions are liquidated during periods of high price action. This process can create favorable entry points for investors looking to take advantage of temporary market resets.
Finally, the Net Buying Volume indicator, which measures the balance between buying and selling pressure, indicates that peak selling activity can signal future price growth opportunities.
A reading below -$30,000,000 according to CryptoQuant, as we have seen recently, may indicate that sellers are approaching exhaustion, paving the way for a potential uptrend.
Key support levels for Bitcoin
While Bitcoin’s current momentum points to another potential rally, analysts warn of the importance of maintaining critical support levels. Recently, crypto analyst It has been identified The $93,580 price area served as a key demand level, where approximately 667,000 addresses collectively acquired approximately 504,000 BTC.
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According to the analyst, staying above this level is crucial to avoid potential selling from stockholders at this price point.
One main demand area for #Bitcoin To watch is $93,580, with 667,000 titles purchased for approximately 504,000. $ Bitcoin. Staying above this support level is essential to prevent these holders from selling! pic.twitter.com/UdXTZOYzGH
– Ali (@ali_charts) November 28, 2024
Featured image created with DALL-E, chart from TradingView
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