Bitcoin Shows Signs of Potential Rally Amidst Market Exhaustion and Sell-Side Ratios
The post Bitcoin Shows Signs of Potential Rally Amidst Market Exhaustion and Sell-Side Ratios appeared on BitcoinEthereumNews.com.
Bitcoin’s market dynamics suggest a potential bounce-back, driven by key technical indicators highlighting a rally on the horizon. Despite a recent slight dip, the cryptocurrency shows resilience as investor sentiment shifts and technical metrics reveal bullish signs. According to COINOTAG analysts, “The sell-side ratio’s significant decrease indicates investor accumulation may be set to ignite a price surge.” Bitcoin shows signs of recovery as technical indicators hint at a potential price rally, though market activity remains subdued. Insights reveal critical trends. Has Bitcoin bottomed yet? One critical metric aligning with the bullish narrative is the sell-side ratio. This ratio compares investor spending within a specific period to the realized market capitalization. Historically, when this level drops to the 0.1% region or below, it often signals the start of a major price rally. Currently, the sell-side ratio is at 0.086%, implying that Bitcoin could resume its rally soon. Source: Glassnode Adding to this bullish outlook is the adjusted spent output profit ratio (aSOPR), which recently crossed below 1, with a reading of 0.99—indicating that traders are selling at a loss. Selling at a loss often forces the market upward as Bitcoin is accumulated at a discount. While these indicators remain bullish, COINOTAG’s analysis indicates traders may be waiting for an optimal buying opportunity. The Bitcoin Market Value to Realized Value (MVRV) momentum (70-day) indicator helps determine this prime opportunity. A significant price run typically begins when the MVRV crosses above its 70-day moving average. Source: Glassnode If this crosses positively, Bitcoin could start making higher highs, increasing its overall monthly gain, which currently stands at 4.32%, according to CoinMarketCap. Market activity remains low Despite the optimistic indicators, current market activity is subdued, with fewer transactions occurring, suggesting a lack of momentum to propel Bitcoin’s price upward. At present, the amount of BTC…
Filed under: News - @ March 30, 2025 8:18 pm