Is Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Bull Cycle Coming
To An End?
This Pattern Could
Say So
Is Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Bull Cycle Coming To An End? This Pattern Could Say So
by Keshav Verma
2 minutes ago
in Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin News
0
A quant has pointed out a pattern forming in a Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin indicator that could
imply the end of the current bull cycle may not be far.
Realized Cap Of New Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Investors Could Hint At End Of Cycle
In a CryptoQuant Quicktake post , an analyst talked about the historical trend
in the fresh capital inflows into the Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin sector and what it might suggest
for the current cycle.
Related Reading: Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Hashrate Approaching Another All-Time High: Price To
Follow?
The on-chain indicator of relevance here is the Realized Cap ,
which measures the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта s total value by assuming that the
value of each coin in the supply is equal to the price at which it was last
transacted on the blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн.
For any coin, its last transaction is likely to represent the last time that
it changed hands, so the price at its time could be considered to be its
current cost basis. Since the Realized Cap sums of this value for the entire
supply, it essentially provides a measure of the total amount of capital that
investors have put into BTC.
Changes in the indicator, therefore, correlate to the amount of capital
flowing into or out of the market. One way to visualize this is by looking at
the trend in the Realized Cap of the young coin-age ranges.
Below is the chart shared by the quant that shows how the percentage of the
total Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Realized Cap occupied by the three youngest age bands has
changed over the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта s history:
Looks like the metric has been following an overall downwards trajectory over
the course of the asset's history | Source: CryptoQuant
From the graph, it s visible that the combined Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Realized Cap
share of the 0 days to 1 day, 1 day to 1 week, and 1 week to 1 month age bands
has spiked recently, implying a large amount of the coins were purchased by
the investors during the past month.
This naturally indicates increased capital inflows into the sector. As the
analyst has highlighted in the chart, BTC has historically seen peak inflows
coincide with peaks in the price itself. In the last few cycles, this happened
when the Realized Cap of these age bands made up for a much more notable
percentage of the market s total than the current one.
Related Reading: Fewer But Bigger: How Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Transactions Changed in 2024
This doesn t mean, however, that the ongoing Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin bull run is safe.
It would appear that the long-term trend in the metric has been that of a
decline, with each top occurring at a lower value than the last.
If the downward trajectory is extrapolated for the latest cycle, then the
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта may not have too much room to run after all. It only remains to
be seen when the peak inflows occur, though, as in the past, there were
usually multiple spikes before the one that led to the cycle s
completion.
BTC Price
At the time of writing, Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin is floating around $99,100, up more than 6%
over the last seven days.
The price of the coin has been gradually climbing up over the last few days |
Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com