Double Digit Bitcoin Gains Metric Hints BTC Is ‘Ready’ To Rally – Analyst
After making a new all-time high of $108,365 on December 17, Bitcoin (BTC) price has fallen below $105,000. The short-term cut from the United States Federal Reserve interest rate on December 18, 2006. It happened earlier. Currently, the market expects a 25 basis point cut.
Despite the short-term volatility, one crypto analyst highlighted a bullish scenario with long-term bitcoin positioning itself for future gains.
Bitcoin LTH profit drops from $10 billion to $3 billion.
Bitcoin recorded a staggering 37% return in November 2024, following a profitable streak that hit a new all-time high. Cointelegraph in November sales pressure reached 366,000 BTC, amounting to $10 billion.
In light of this, Percival, a certified Bitcoin analyst at CryptoQuant, highlighted the sharp drop in profits over the past three weeks.
Bitcoin Net Profit Chart by Percival. Source: CryptoQuant
As shown in the chart, profits for long-term holders fell from $10 billion on November 25 to $3 billion on December 14, even though the price of BTC increased by 12% during that period. The analyst added,
“This means LTH has realized most of its profits at this stage and is poised to see further increases.”
Additionally, with the help of the 90-day market and realized price slow oscillator chart, Percival revealed that the index is in the 0.5 equilibrium zone, indicating a neutral position between buyers and sellers.
Bitcoin 90-day market with real price trend chart. Source: CryptoQuant
As the crypto asset was neither overbought nor oversold, the strong balance between the two sides showed the possibility of an “upward trend”.
Bitcoin price varies with Coinbase premium
It should be noted that despite the reduction in leverage and the positive development of the neutral trend, Coinbase's premium has been decreasing since the beginning of December. Yonsei Dent, an anonymous crypto trader, highlighted that over the past two weeks, the premium has been at an “unprecedented discount” to the price of BTC.
Bitcoin price difference with Coinbase premium. Source: CryptoQuant
The inverse correlation suggested that the BTC rally was not supported by the interest of US investors. The analyst added,
“It may indicate weakness in the medium-term upward momentum. Investors should monitor this development closely and be cautious.”
Regardless of the BTC choppy market structure, Diane Crypto, an independent crypto trader, has followed Bitcoin's price action over the past year. The trader expects prices to fall further heading into the final two weeks of 2024 before a “real crash” in Q1 2025.
Related: Why Is Bitcoin Price Down Today?
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
