The market started a new round of rise after digesting the reduction of GBTC holdings. Even after the release of less-than-expected U.S. CPI data for January, the market only called back slightly and continued to maintain a strong upward trend.
Although the max drawdown of BTC in this bull market has always remained at 25%, which is much lower than the level of the previous bull market, it can be seen from such as Glassnode that the 'sell-the-news' correction after the ETFs launched has resulted in a healthy reset of several metrics. The STH supply in profit fell from its peak at ~100%, to retest its all-time-average of 57.5%. Risks have been released, and the continued increase in stablecoin supply has provided support for the rise.
BTC entered a narrow range after rising. In this round of bullish trend, whenever BTC breaks through the year's high and starts to fluctuate, a correction is about to begin. BTC is getting closer to all-time highs and has almost repaired all the losses caused by the interest rate hikes.
Looking at the indicators, trading volume and whale participation are once again declining, with almost no whales participating in trades during the February rally. This phenomenon reflects that both whales and shrimps are more cautious after price rises close to ATH. From the ME indicator, BTC continues to maintain a positive bullish trend, and the purple wavy area widens.
In summary, we raise the resistance level to 56000 and the support level to 48000. BTC is likely to undergo a correction this week.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
Although the max drawdown of BTC in this bull market has always remained at 25%, which is much lower than the level of the previous bull market, it can be seen from such as Glassnode that the 'sell-the-news' correction after the ETFs launched has resulted in a healthy reset of several metrics. The STH supply in profit fell from its peak at ~100%, to retest its all-time-average of 57.5%. Risks have been released, and the continued increase in stablecoin supply has provided support for the rise.
BTC entered a narrow range after rising. In this round of bullish trend, whenever BTC breaks through the year's high and starts to fluctuate, a correction is about to begin. BTC is getting closer to all-time highs and has almost repaired all the losses caused by the interest rate hikes.
Looking at the indicators, trading volume and whale participation are once again declining, with almost no whales participating in trades during the February rally. This phenomenon reflects that both whales and shrimps are more cautious after price rises close to ATH. From the ME indicator, BTC continues to maintain a positive bullish trend, and the purple wavy area widens.
In summary, we raise the resistance level to 56000 and the support level to 48000. BTC is likely to undergo a correction this week.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
