Thursday, April 18, 2024

Bitcoin breaks barriers as investments reach new heights.

According to reports released on Monday by MicroStrategy and BlackRock, the price of Bitcoin (BTC) is still moving in a northerly direction. Despite the fact that market optimism is growing, investors’ willingness to take risks is also showing signs of being elastic.

Bitcoin capital inflows are getting close to unrivaled levels. 

The capital inflows section of the Glassnode report was the most interesting part of the study. The report stated that there was a “steady and healthy inflow of capital into the [BTC equity] asset.” According to the study, the rebound surge for the price of Bitcoin is getting close to being finished, and capital is gradually coming into the market for Bitcoin. As a result of this influx, the total market valuation of Bitcoin is getting close to $460 billion, which is three percent lower than its all-time high.

The average investor now holds an unrealized profit of more than 120% per coin as a result of this exceptional performance, which has led to a major improvement in the profitability of Bitcoin investors.

To add insult to injury, the volume of exchange inflows has reached unprecedented heights, with short-term holders dominating the flows and depositing more than two billion dollars’ worth of volume to exchanges every single day. According to Glassnode, this indicates that there is “a relatively strong demand for speculation and trading activity.”

The open interest in both the futures and options markets is another statistic that is registering close to all-time highs at the moment. Directional short-sellers are actively betting against the upswing as the total number of open long and short bets has reached its highest point.

The FXStreet team mentioned approximately $100 million in shorts liquidated as Bitcoin (BTC) approached the $55,000 milestone and over $250 million in total liquidations once Bitcoin (BTC) crossed the $57,000 milestone in a report they published on Monday. This is in contrast to the data provided by Glassnode, which claims that the total amount of liquidations over the previous month has reached at least $465 million.

Bitcoin price prognosis as Glassnode reports increased capital inflows in the BTC market

The price of Bitcoin continues to remain over $57,000, and the Relative Strength Index (RSI) is inclined north, which indicates that additional gains are likely to occur in the near future. The Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD), both of which are still in positive territory, emphasize that momentum is increasing.

As a result of increased buying pressure, the price of Bitcoin may reach the psychological level of $60,000, which is 5% higher than the present levels. There is a possibility that the cryptocurrency that is currently the most valuable on the market might reclaim its all-time high price of $69,000 if the market conditions are extremely optimistic. In the daily time frame, the price of Bitcoin needs to break and close above its midline at $65,664 in order for this to occur. Additionally, the price needs to enter the supply zone, which is located between $63,329 and $67,999. If this were to occur, it would be evidence that the upward trend is continuing.

On the other hand, early profit-taking could cause the price of Bitcoin to fall below the threshold valued at $55,000. On the other hand, if sellers continue to push for a collapse, Bitcoin might reach $50,000.

The Spent Output Profit Ratio (SOPR), which is currently at 2.10, may be indicating a retreat. If this ratio is greater than one, it indicates that token holders who are waiting on unrealized profits are leaning toward cashing in on their gains. This ratio is a moving average (MA) that is calculated over a period of thirty days.

Despite the fact that Bitcoin is not yet ready to be sold, the Relative Strength Index (RSI) has risen over 70, which indicates that the cryptocurrency is at a high risk of correcting as a result of being an overbought asset. This bolsters the downturn hypothesis.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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