Santa Claus will be an angel or an evil for this Christmas?
We are actually in a phase of consolidation / accumulation forming a descending triangle which is usually bearish but on chain data provide us a strong HODL indication.
* LTH spending is very gradual & minimal, not giving any strong signs of looking to exit the market.
* The long liquidations cascade has caused a decrease in positive funding rates which is indicative of less leveraged market and it’s positive for a spot-drive price increase to take place.
* Moreover, Open Interest has decreased significantly, which is complementary to stabilising normal levels of funding rates. Both indicating that a decent amount of leverage has left the market and spot-driven price increase is likely to happen.
* Looking at Illiquid Supply Shock, which is the ratio between illiquid supply and the sum of liquid & highly liquid supply. We can see a bullish divergence, the metric is continuing to trend higher, means more coins are moving to illiquid entities, entities that are likely to HODL more than 75% of their position.
This along with the minimal spending of LTH is indicative that market participants are taking advantage of the last price draw-down to accumulate coins and strengthen their positions for the upcoming macro uptrend.
So will the Sauta Claus be kind with us?
If we break down the triangle we can see a fall until the 40k$, in the other case it can be the beginning of a new bull run with first target at 51k.
* LTH spending is very gradual & minimal, not giving any strong signs of looking to exit the market.
* The long liquidations cascade has caused a decrease in positive funding rates which is indicative of less leveraged market and it’s positive for a spot-drive price increase to take place.
* Moreover, Open Interest has decreased significantly, which is complementary to stabilising normal levels of funding rates. Both indicating that a decent amount of leverage has left the market and spot-driven price increase is likely to happen.
* Looking at Illiquid Supply Shock, which is the ratio between illiquid supply and the sum of liquid & highly liquid supply. We can see a bullish divergence, the metric is continuing to trend higher, means more coins are moving to illiquid entities, entities that are likely to HODL more than 75% of their position.
This along with the minimal spending of LTH is indicative that market participants are taking advantage of the last price draw-down to accumulate coins and strengthen their positions for the upcoming macro uptrend.
So will the Sauta Claus be kind with us?
If we break down the triangle we can see a fall until the 40k$, in the other case it can be the beginning of a new bull run with first target at 51k.
Trade active:
First target reached at 51k$