Market condition

Is current Bitcoin [BTC] Does the state of the market look like a “coil spring”?


After a minor inconvenience, Bitcoin [BTC] managed to rebound above $ 61,000 as the weekend dawned. There are many opportunities for traders above this level. Prominent analyst pseudonym ‘TXMC’ looked into detail regarding the current state of the Bitcoin market. He observed that the overall perspective of the king’s coin mirrors that of a “coil spring” based on key indicators such as Transfer volume, HODL realized [RHODL], Liquid supply, SOPR, etc.

The on-chain analyst referred to the Glassmode charts attached below and said the price of Bitcoin below $ 60,000 is not appealing to holders. The reason for the “disinterested” feeling among market participants is the fact that its price below the level in question offers fewer opportunities for sale and profit taking is minimal.

Apart from this, TXMC also points out that the “volume of old coins” is still low on a historical basis despite the rise. Additionally, he observed that the holders have continued to rack up since May’s bull run and the trend is still ongoing.

Bitcoin [BTC] string summary

Let’s take a close look at the metrics mentioned above.

Transfer volume, as shown in the chart above, jumped 3% of the realized cap, which typically leans toward bullish price action. Interestingly, the appreciation measures have remained mostly unfazed since September despite significant volatility. TXMC says the utility’s overshooting of the grid value is a healthy sign and that the latest hike could push demand further on an upward trajectory.

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As for the realized HODL, the ratio of the most recent to the oldest coins shows that the current Bitcoin scenario is still in the midst of a bull market that started two years ago. In his tweet, the analyst drew a parallel with the previous 2013 double bull run event and the current outlook and observed that not only the ATH price was reflected, but also the formation of macro highs.

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On the other hand, the liquid supply, which determines the amount of Bitcoin held by individuals, has been declining steadily since early 2020 after years of growth. HODLers are increasingly diverting the offer of this group of investors from the market. This is quite different from the current one, as the analyst noted that previous bull runs have never seen such a drop in the liquid supply.

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Finally, the profitability ratio of the production spent [SOPR] indicates that the profitability ratio for coins spent is low given current market conditions and the “proximity” to the new high price that was set last week. As shown in the chart above, the SOPR indicator describes relative benchmark activity, against the rising profit values ​​that one might anticipate in a distribution event. All of these factors attract the attention of HODLers patients who have not yet stopped stacking.