Would Bitcoin Reclaim $70,000 Soon? Key Data Suggests New Investors Hold the Key
24 Outubro 2024 - 11:30PM
NEWSBTC
Bitcoin recent decline has led to a slight pushback in investor
confidence and increased anticipation within the crypto community,
with many now craving a rally back above $70,000 more than before.
Amid this, a new analysis suggests that although the Bitcoin market
could be on the brink of a major breakout, it hinges on a major
indicator that concerns new investors. Related Reading: Bitcoin’s
Network Fundamentals Turn Bullish—Here Are The Details New
Investors Hold the Key According to a CryptoQuant analyst, Avocado
Onchain, new market investors could drive the next significant
upward price movement. The analyst shared these insights on the
CryptoQuant QuickTake platform, highlighting key data trends that
point to a potential price surge. Avocado Onchain’s analysis
focuses on “Unspent Transaction Outputs (UTXOs),” specifically
those under six months old. UTXOs represent the amount of
cryptocurrency that remains unspent after a transaction, and they
can provide valuable insights into market sentiment. According to
the analyst, the decline in UTXOs under six months has stopped and
is now leveling off. Currently, only 8.6% of Bitcoin investors are
at a loss based on the present price of the cryptocurrency. In past
market cycles, when the decline in UTXOs halted and showed an
increase, Bitcoin’s price often surged, marking the beginning of a
new bull run. Bitcoin Historical Patterns And Market Sentiment The
CryptoQuanat analyst further highlighted that the data from
previous Bitcoin market cycles reveals a pattern in which the
percentage of investors holding losses converged toward zero before
significant price increases occurred. Avocado points out that in
those instances, as the number of investors in loss diminished, new
investors entered the market in large numbers, driven by rising
optimism. This influx of new participants tends to trigger a sharp
price rise as new buyers increase demand for Bitcoin and fuel
further upward momentum. For Bitcoin’s price to reach new heights,
the analyst suggests that market sentiment must shift more
favorably. This positive sentiment is typically fuelled by the
entry of new investors who tend to buy in when market conditions
are improving. Related Reading: Bitcoin Profitability Index Hits
202%: Is This Enough For A Top? Avocado also highlights that these
new investors often show increased interest when Bitcoin nears or
breaks through its previous all-time high, leading to an “explosive
influx” of new buyers. If Bitcoin’s current market conditions align
with historical patterns, the cryptocurrency could be on the verge
of a significant breakout. The CryptoQuant analyst further notes
that while Bitcoin’s price has recently been in a downtrend, this
leveling off of UTXO data is a key sign that could indicate a
reversal. The analyst noted: If history repeats itself, the current
price of Bitcoin could be seen as being on the verge of an
explosive breakout. Featured image created with DALL-E, Chart from
TradingView
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