Some indicators within the Bitcoin chain show that there are similarities between market conditions after the previous historical peak and the current situation. If this hypothesis is correct, the price of bitcoin will probably rise soon.
to the Report As one CryptoQuant analyst has said, there seems to be a strong resemblance between the current state of the bitcoin index and its historical high.
There are three main criteria that indicate the relationship between the previous historical peak and the current market conditions. The first is digital currency exchanges, which show the bitcoin inventory of wallets operating in centralized exchanges. The chart below shows the changes in this index over the past year.
Looking at the chart above, it seems that there are similarities between these two time periods. In both cases, there is a reduction in prices and a decrease in the reserves of the exchange offices.
The next item is the ratio of trading coefficients or levers. This indicator shows how much leverage traders use in their trades on average. It should be noted that this index is the result of dividing the volume of open contracts by storing digital currency exchanges. Open contracts are those derivative contracts that have not yet been settled.
It can be seen here that both in the previous historical peak and in recent days, the index has faced a significant decline.
The last item is the output stream profit ratio or “SOPR” index, which is obtained by dividing the average selling price of bitcoin by the average buying price of traders. Simply put, the SOPR index indicates that bitcoin addresses are selling their assets at a profit or at a loss. The following diagram shows the trend of changes in this criterion.
SPOR appears to have fallen below 1 in both periods. This means that bitcoin investors are now selling their assets at a loss. It should be noted that SPOR above 1 indicates profit and SPOR less than 1 indicates sellers’ losses.
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If, as these indicators show, the current market trend is really similar to the previous historical peak, then the price of bitcoin may soon rise and then record a new peak. However, just like the last time after the growth of bitcoin, there will probably be a big fall that will push the price to lower levels. This price jump could be the last uptrend in the bitcoin market for a long time.
At the time of writing, Bitcoin is hovering around $ 45,300, and the price of this digital currency has fallen by 10% in the last 7 days. It is worth mentioning that the price of Bitcoin has decreased by 1% during the last 30 days.