Categories: Crypto

Experts Warn of Bitcoin Moving to “High Risk” Mode

Several on-chain indicators have entered the so-called “risk zone”, which may be a signal of the initial stage of a bull market. Glassnode came to this conclusion.

The analysis is based on a group of indicators that take into account a wide range of data and categories of investor behavior. The combination of the two often gives a more complete picture of the market. It covers both short-term and long-term cycles.

The chart below shows them as a heat map of varying degrees of risk over the past five years. It demonstrates a significant coincidence of metrics and significant price extremes.

According to experts, a high risk indicator is usually observed in the early stages of a Bitcoin bull market. It means the hodlers return to a “significant level” of profitability, which can push them to start taking profits.

ETF news eases overheating

In particular, the MVRV indicator has approached this critical zone in relation to long-term investors. Such a high value (2.06) has not been observed since the collapse of FTX.

A similar status of “high” and “very high” risk is currently typical for six of the remaining nine metrics. This means a relatively low level of realized profit, given the active price growth in recent weeks, experts explained.

Moderate “unloading” of coins by hodlers after the approval of spot Bitcoin ETFs brought their spending rate away from the “risk zone.”

On February 11, the price of the first cryptocurrency consolidated above $48,000. The continuation of positive dynamics coincided with an increase in net inflows into exchange-traded funds based on digital gold to a record $541.46 million (February 9). The volume of assets under management of products reached $32.4 billion.

The improvement in dynamics was made possible, among other things, by reducing the outflow from GBTC to the minimum values ​​since the registration of the ETF - $51.81 million.

$50,000 Resistance

In a commentary to ForkLog, trader Artem Zvezdin noted the completion of sales in early February upon the approval of the ETF. The expert sees in the current dynamics the return of institutional investors, who are increasing the share of risk in their portfolios in anticipation of the Federal Reserve lowering the key rate.

“If Bitcoin does not consolidate above the psychological level of $50,000 in the coming week, we can expect a small technical correction in the range of $44,000-45,000 and subsequent growth. The main factor will be the expectation of [changes in] Federal Reserve policy and halving. In my opinion, the first cryptocurrency this year will no longer fall below $40,000. In the coming months, we can expect an increase in quotes to $60,000,” Zvezdin wrote.

Keith Alan, co-founder and CEO of Material Indicators, also pointed out resistance near $50,000. He cited order volumes and pointed to the unfavorable reward/risk profile for short-term buyers at current levels. The specialist emphasized the lack of changes in positive expectations for hodlers.

legenda

Recent Posts

Employees of a fraudulent call center network detained in Russia: details

In Russia, managers and employees of a “branch” of an international network of call centers were exposed. This was reported by RBC-Ukraine...

1 day ago

Why did the judicial “under-reformer” Mikhail Zhernakov decide to criticize the legal profession?

Mikhail Zhernakov is one of the most public figures in the field of judicial reform in Ukraine, which...

1 week ago

The pointless “book club” of the Ministry of Culture

The ministry spent tens of millions on printing unnecessary books in “its” publishing houses. The Ministry of Culture during...

2 weeks ago

More than two state budgets. How money is withdrawn from Ukraine

Over more than 30 years of independence, at least $100 billion has been withdrawn from Ukraine abroad,...

2 weeks ago

“Decided” by the tax office Andrei Gmyrin organized a business with Russians and relatives of judges

Remember the former head of the Tax Service of Ukraine, Roman Nasirov, who wrapped himself in a blanket, pretending to be seriously ill in...

2 weeks ago

Are raider Astion and businessman Kosyuk bankrupting a well-known agricultural holding through the courts?

The famous raider Vasily Astion deliberately destroys the famous agricultural enterprise Complex Agromars LLC in the interests of the owner...

2 weeks ago

This website uses cookies.