'Profit-Taking Has Completed' - Will The Market See Bullish | Crypto Land
'Profit-Taking Has Completed' - Will The Market See Bullish Bitcoin Signals?
Earlier today, BTC jumped to almost USD 35,350 before it corrected lower again. At pixel time (14:00 UTC), BTC trades at USD 34,656 and is up by 3.4% in a day and 7% in a week.
Meanwhile, once selling starts, "the selling pressure begets more sellers taking their profits while it's still there. Profit-taking has now completed," said crypto researcher and analyst Willy Woo in a recent weekly report by on-chain analysis firm Glassnode.
Per Woo's "bullish" comment, "the market has completed a full purge of overheatedness."
Pointing to a SOPR (Spend Output Profit Ratio) chart, Woo argues that in order for it to go lower, investors would need to sell at a loss, and in order for them to be willing to do so, we'd need to enter a bearish phase, which is "very unlikely as we are bounded by the USD 29k price floor."
Meanwhile, per Glassnode, investors were confident the price would rise further, and concluded that it's unlikely that investors would be selling at a loss now.
Furthermore, the firm yesterday reported that the Bitcoin network activity reached an all-time high. More than 22.3m unique addresses were active in the network sending or receiving BTC, they tweeted, which is the highest monthly number in Bitcoin's history.
There are some other bullish signs reported, however. Analyst Byzanite General noted that global BTC spot reserves are at the lowest point since the macro bottom in December 2018, saying "spot reserves dropped pretty hard yesterday (which is bullish)." This sudden outflow, he argues, is mostly because of crypto exchange Coinbase.
Connected to this is the amount of BTC flowing out of Coinbase in a single day. Per crypto data firm CryptoQuant's CEO Ki Young Ju, over BTC 15,200 (USD 529m), left Coinbase Pro yesterday. "It's likely to be OTC over-the-counter deals from institutional investors," he said, and added: "I believe this is the strongest bullish signal."
