Coin distribution currently outpaces coin accumulation.
Oinonen t asserts that analysis of BTC’s exchange stablecoins ratio (ESR) and exchange reserves, two on-chain indicators, verified the likelihood of additional price growth.
The expert pointed out that the fact that BTC’s ESR is diverging from the current price and has crossed a technical inflection point is encouraging.
The expert described this as a “good development” for the market. Additionally, BTC’s exchange reserves have been in a long-term downward trend, reflecting companies storing their assets off-exchange.
Oinonen t came to the conclusion that these elements, combined with the impending 2024 halving event, show that BTC is heading for a new pre-halving accumulation cycle.
An further CryptoQuant analyst working under the alias Yonsei dent examined BTC’s Supply in Profit measure and discovered that the present market has passed the Bottom Discovery phase and reached the Transition period, which frequently comes before the possibility of a bull market.
He also discovered that the Adjusted Spent Output Profit Ratio (aSOPR) for BTC has achieved the cycle low on a 400-day moving average, indicating that additional drops are improbable.
“In comparison to the moment the 2019 bull market began, it appears like a bull transition is currently going through the bottom. Although Supply in Profit (%) decreased after entering the Transition phase in the instance of the Bottom in 2015–2016, the Bottom period became longer. ASOPR 400MA has already surpassed the cycle’s bottom, making additional drops improbable. Yonsei dent cautioned, “However, there is a risk that the current scenario will persist until it changes to a positive (+) slope.
Remain vigilant
The price of the king coin at the time of publication was $21, 885.
An asset’s OBV declines steadily over time because there is less purchasing demand and more selling pressure, which suggests that market participants are growing more pessimistic about the asset. As there is less demand for the asset, this might indicate probable price declines.
The Chaikin Money Flow (CMF) position for BTC provided evidence of the market’s mood. At -0.07 at the time of publication, more investors chose to distribute their BTC holdings as opposed to keeping them.