Decrease in Bitcoin deposits into cryptocurrency trading platforms reaches 2016 minima
In an intriguing development for the cryptocurrency market, CryptoQuant analyst Alex Adler Jr. has proposed an impending Bitcoin rally in 2024. This prediction is based on the Bitcoin Realized Profit-Loss Ratio, a metric that reflects the balance of profits and losses realized by Bitcoin holders.
When this ratio is average or low, it suggests less selling pressure from profit-taking or panic loss-cutting, potentially supporting a rally. In the current scenario, the ratio is at an average level, indicating a lower risk of a sharp market correction and thus a favourable environment for upward price movement.
Adler Jr. believes that this stable ground, along with other factors such as the expected easing of monetary policy by the U.S. Federal Reserve and institutional buying interest, could lead to significant price movements for Bitcoin.
One of the key technical indicators highlighted by Adler Jr. is the low level of daily Bitcoin deposits on exchanges. In the final weeks of 2024, these deposits have dropped to 30,000, which is three times lower than the average of the past 10 years, standing at 90,000.
This low level of deposits could lead to a Bitcoin shortage on the spot market, as previously observed before major cryptocurrency rallies. The peak in the current Bitcoin cycle was 125,000 daily deposits, a stark contrast to the current figure.
Moreover, the decrease in Bitcoin transfers to exchanges indicates that users prefer to hold coins in personal wallets rather than sell. This trend suggests that investors are less inclined to liquidate their holdings, further supporting the theory of a potential Bitcoin rally.
While these indicators are promising, it's important to note that they do not guarantee a specific price trajectory. Nonetheless, they provide valuable insights into the current market dynamics and offer a positive outlook for Bitcoin investors.
[1] Expected easing of monetary policy by the U.S. Federal Reserve and institutional buying interest are broader market influences that have historically contributed to Bitcoin price gains. [2] The Bitcoin Realized Profit-Loss Ratio is a metric that reflects the balance of profits and losses realized by Bitcoin holders. [3] CryptoQuant analyst Alex Adler Jr. suggests an impending Bitcoin rally in 2024 based on Bitcoin's realized profit-loss ratio being at an average level, which indicates a lower risk of a sharp market correction and thus a favorable environment for upward price movement.
Investing in Bitcoin could potentially yield significant returns as CryptoQuant analyst Alex Adler Jr. predicts an impending rally in 2024, with factors such as the expected easing of monetary policy by the U.S. Federal Reserve and institutional buying interest contributing to this upswing. The Bitcoin Realized Profit-Loss Ratio, a metric that reflects the balance of profits and losses realized by Bitcoin holders, is currently at an average level, indicating a lower risk of a sharp market correction and offering a favorable environment for upward price movement.
