Recent data from cryptocurrency market analysis firm Glassnode reveals strong accumulation of Bitcoin
$ 105,140, particularly on the Coinbase and Binance platforms. The firm observes an increase in demand for Bitcoin while examining investor activities on these two major exchanges. Additionally, Glassnode’s market assessments signal that trading volume data aligns with the current trend.
Intense Buying on Spot Market
Glassnode identifies an increase in buy pressure on off-chain transactions at exchanges. According to the firm’s analysis, buying pressure remains high on Coinbase, while Binance experiences a noteworthy reduction in selling pressure. Investors seem to adopt a “buy the dip” strategy, especially during short-term price declines, indicating sustained confidence in Bitcoin.
Glassnode states: “Off-chain spot flows have turned positive, with significant net buying pressure on Coinbase and reduced selling pressure on Binance. This behavior suggests ‘buying the dip’ is prevalent at these major exchanges.”
Support Zones and Investor Profitability Analysis
According to Glassnode’s analysis, recent 30-day buying trends reveal a strong support zone between $93,000 and $95,000. This range could serve as a crucial demand point during short-term market pullbacks.
Glassnode notes: “This area could function as a strong support level during potential short-term market pullbacks, reflecting a valuable demand zone for investors.”
Moreover, the firm’s “Short-Term Holder Profit/Loss Ratio” shows that a majority of investors holding Bitcoin for less than 155 days are in profit. With the ratio above 9, it implies that over 90% of short-term supply is in profit.
Glassnode comments: “As long as this ratio remains well above 1.0, the bullish trend could be sustained. However, if it drops significantly, there might be a shift in market strength and trend weakening.”
Derivatives Markets and Buying Trends
The analysis points out that derivatives markets haven’t fully aligned with the spot market’s rise. Open interests and funding rates in futures and options don’t completely mirror the spot market dynamics. There’s cautious yet optimistic sentiment in options trading, while no excessive long positions are noted in futures.
Glassnode reports: “Derivatives markets haven’t caught up fully with the developments yet. We find that open positions and funding rates lack full alignment with the upward momentum in the spot market. The options market is cautious but optimistic. There are no overly risky long positions in futures.”
Additionally, the article notes Bitcoin’s current trading level at $104,191, up by 1% over the last 24 hours. The market’s overall outlook signals positive short-term investor behavior and technical indicators, although derivatives markets aren’t accurately reflecting the spot market rise.
The recent surge in accumulation and rising demand in the cryptocurrency market attracts attention. According to Glassnode’s technical indicators, certain price levels hold critical importance, and short-term investor behaviors contribute to market activity. Market observers continue to monitor indicators like support levels and short-term investor profit ratios. These indicators and analyses provide insights into potential investor trends. Data suggests that buying tendencies remain dominant in the near term. However, given the limited pace at which derivatives markets capture developments, the observation for balanced price movement across the market continues.
