Bitcoin bulls remain determined amidst waning sentiment
- An assessment of BTC’s On-Chain Losses Ribbon revealed that a bullish trend was still present in the market.
- A fall in BTC’s exchange reserves signals a decline in the coin’s sell-offs.
As Bitcoin’s [BTC] price traded below the $30,000 psychological price mark, positive sentiment in the market dwindled. However, pseudonymous CryptoQuant analyst BaroVirtual has found that the bullish trend in the market has remained.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
The analyst assessed the leading coin’s On-Chain Losses Ribbon and found that BTC’s price reached a local bottom between December 2022 and January 2023 and has embarked on a bullish trend since February.
BTC’s On-Chain Losses Ribbon is a technical indicator that uses moving averages to measure the amount of BTC in loss. The four moving averages used are the 180-day moving average, the 210-day moving average, the 240-day moving average, and the 270-day moving average.
When the Ribbon is narrow, it indicates that there is a small amount of BTC in loss. This is a bullish signal, as it suggests, that the market is not oversold and that there is still room for prices to rise.
Conversely, when the Ribbon is wide, it indicates that there is a large amount of BTC in loss and the market is in an oversold state.
Further, a bullish signal presents itself when the Ribbon turns from top to bottom, as it signals that the price of the asset in question has bottomed out. Also, when the Ribbon starts to turn from bottom to top, this usually means that the coin is approaching a price top, and a decline is imminent.
“In February 2023, a rapid decline in the Ribbon began, signaling a steady development of the bullish trend. The danger for bulls from the point of view of this indicator can appear only when the Ribbon reaches its conditional lower point, then starts to fix its position and turn from bottom to top. I repeat that, at the moment, nothing threatens the bullish trend.”
Market lends unwavering support to the number one coin
Even as BTC’s price persists within a narrow price range since April, its exchange reserves continue to fall. BTC’s Exchange Reserves metric tracks the number of the king coin held on cryptocurrency exchanges.
The rise in BTC’s Exchange Reserves signals increased distribution, often putting downward pressure on its price. However, a decline means that few sell-offs are being recorded, leaving room for the coin’s price to rally.
At press time, BTC’s exchange reserves were 2.08 million BTC. On a 30-day moving average, this has fallen by 1.4%, data from CryptoQuant revealed.
Despite the significant resistance BTC faces at $30,000, the number of open trade positions on derivative exchange trading pairs has also increased. Also assessed on a 30-day moving average, BTC’s Open Interest has risen by 6%.
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Per CryptoQuant, this was $9.51 billion at press time.
With the period under review marked mostly by positive funding rates, investors have continued to bet in favor of price growth.