Is Bitcoin Overheated Right Now? This Metric Suggests No

Data of an on-chain indicator could suggest Bitcoin is currently not at a stage where its price would be at a significant risk of facing correction. Bitcoin 365-Day MA Growth Rate Is Sitting Below Historical Overheated Zone In a post on X, CryptoQuant author Axel Adler Jr has discussed about the recent trend in the “Growth Rate” metric for Bitcoin. The Growth Rate basically keeps track of the difference between the changes happening in the Bitcoin Market Cap and Realized Cap. The Market Cap here is naturally just the simple valuation of the cryptocurrency’s total circulating supply at the current spot price. The Realized Cap, on the other hand, is a bit more complex. Related Reading: Bitcoin Slips Under $67,000: Can BTC Rely On This Historical Support Again? The Realized Cap is an on-chain capitalization model for the asset that takes the “real” value of any coin in circulation to be the same as the price at which it was last transferred on the blockchain. As the last transaction of any coin was likely the last instance of it changing hands, the price at its time would act as its current cost basis. Since the Realized Cap sums up this price for all tokens of the asset, it essentially calculates the sum of the cost basis of each coin in the circulating supply. In other words, the Realized Cap measures the total amount of capital that the investors have used to buy their Bitcoin. The changes in the Realized Cap would, therefore, represent the capital inflows or outflows happening for the cryptocurrency. As the Growth Rate keeps track of how changes in the Realized Cap are reflecting in the Market Cap, it basically tells us about how reactive the market is being to capital flows. Now, here is a chart that shows the trend in the 365-day moving average (MA) of the Bitcoin Growth Rate over the last decade or so: As is visible in the above graph, the 365-day MA Bitcoin Growth Rate has been at positive levels since early 2023. When the indicator has green values, it means that the Market Cap is growing at a rate faster than the Realized Cap. At present, the indicator is sitting at the 0.001 mark, which is a relatively high level. Thus, it would appear that capital inflows have been rapidly driving up the price recently. Historically, during periods of euphoria in the market, where Market Cap has exploded relative to the Realized Cap, tops have become more probable to take place. Related Reading: Litecoin In Uphill Battle: Strong Resistance Might Block Recovery From the chart, it’s apparent, though, that the recent levels of the metric, although high, have still been below the 0.002 mark beyond which corrections have become likely in the past. The Bitcoin all-time high (ATH) back in March, which has continued to be the top for the rally thus far, had also occurred when the Growth Rate had surged above this level. BTC Price Bitcoin had slipped under the $67,000 mark yesterday, but the asset has since seen a recovery push that has now taken its price back above $69,300. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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This Bitcoin Metric Is One Of Cryptos Top Leading Indicators: Santiment

The on-chain analytics firm Santiment has explained how this Bitcoin indicator has been one of the top leading indicators in the cryptocurrency market. Holdings Of Bitcoin Investors With At Least 10 BTC May Correlate To Price In a new post on X, Santiment has discussed about a metric that has historically been one of the top leading indicators in the sector. The metric in question is the total amount of supply held by the Bitcoin investors carrying at least 10 BTC in their wallets. Related Reading: How High Can Bitcoin Go Before A Top? Analyst Chimes In At the current exchange rate of the cryptocurrency, this cutoff is equivalent to around $683,000. As such, the investors holding sums of this scale or higher would be larger than the regular retail holders. Key groups such as sharks and whales fall in this range. These cohorts are generally considered to be influential beings, so their behavior can be worth keeping an eye on. While the 10+ BTC group wouldn’t solely include these large investors, the trend in its holdings would still at least in part encapsulate what these key holders would be doing. Now, here is a chart that shows the trend in the combined holdings of investors carrying balance in this range over the last few years: As displayed in the above graph, the Bitcoin supply held by investors belonging to this group has been going up recently, suggesting that accumulation has been occurring from the large holders. According to Santiment, there has historically been a pattern between the price and the behavior of the investors falling in this range. “When they accumulate, cryptocurrencies rise. When they dump, extended bear markets come,” explains the analytics firm. Instances of this trend are also visible in the chart. The supply held by this cohort started rising in October 2019 and kept up the rise throughout the bull run that followed in 2021. In February 2022, the behavior of these Bitcoin investors changed, however, as their combined holdings started heading down instead. This led into the bear market. The decline stopped after the FTX crash back in November 2022 and the holdings of these investors took to sideways movement in 2023. At the end of the year, another shift finally happened as the metric gained an uptrend. This accumulation likely kicked off because of the imminent spot exchange-traded fund (ETF) approval in January. These investors kept up this buying pressure post-approval as well, which all culminated into the rally towards the new all-time high (ATH). Related Reading: Is Mt. Gox A Worry For Bitcoin? Crypto Analyst Weighs In Despite the struggle that Bitcoin has faced recently, the trend in the indicator hasn’t flipped. As such, more bullish price action could be ahead for the asset, if historical pattern is to go by. BTC Price Bitcoin has fallen back to sideways movement recently, with its price trading around $68,300 at the moment. Featured image from Dall-E, Santiment.net, chart from TradingView.com

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Nansens Bitcoin On-Chain Analytics Reveal 42% Increase In BTC Transactions

Blockchain analytics platform Nansen announced the launch of its Bitcoin (BTC) on-chain analytics to bring real-time, detailed insights into the flagship cryptocurrency, enabling users to track key on-chain metrics in the platform. Related Reading: Ethereum To Move Sideways For 2-3 Months? Analyst Says Longer ETH Consolidation Is Needed Nansen Brings Real-Time On-Chain Analytics For Bitcoin On Thursday, Nansen introduced its Bitcoin Growth Dashboard to provide a detailed view of the flagship cryptos market movements and address the lack of user-friendly tracking tools for in-depth analysis in the market. The analytics platform noted that examining Bitcoins network at the same level as other blockchains has been difficult since most tools use outdated address labeling, fragmented data, or require advanced technical skills to extract meaning insights. As a result, the new Bitcoin on-chain analytics aims to bring the same depth of data that Nansen users have relied on for Ethereum and other blockchains to Bitcoin by enabling traders, institutions, and analysts to monitor active addresses, transactions, and the principal entities interacting on the network. Alex Svanevik, Nansens CEO, shared his excitement about Bitcoin analytics, explaining that users can use the platform to monitor detailed key BTC on-chain metrics: Bitcoin is the most important asset in crypto, and were thrilled to finally bring Nansens industry-leading analytics to BTC. With our platform, users can now track Bitcoins key onchain metrics with the same level of detail and precision they expect from Nansen. The new data aggregation will allow users to see the exchanges and entities that move the most BTC to tackle the guesswork on whether the transaction spikes are retail-drive, institutional-driven, or exchange reshuffling. Users can also observe BTCs liquidity and supply shift in real time to identify crucial trends before they hit the broader market. Additionally, they can track the crypto markets sentiment with address activity data, offering users a new way to gauge Bitcoins adoption and investor sentiment. BTC Transactions See 42% Daily Surge Nansens new Bitcoin on-chain analytics revealed exchange dominance and shifts in network activity. According to the analytics platform, the largest Bitcoin-active entities include some of the worlds biggest crypto exchanges. The data shows that Binance, Bybit, OKX, Robinhood, and KuCoin are among the top 5 BTC-active exchanges. Binance dominates the list with 40.68% of tracked BTC transaction activity, followed by Bybits 23.36% and OKXs 18.88%. Meanwhile, Robinhood continues to emerge as a key Bitcoin custodian with its 8.72% share, Nansen pointed out. It also noted that the network trend shows significant transaction spikes between April and June 2024, likely fueled by institutional moves, major market events, and mine behavior changes. In the past 24 hours, the number of Bitcoin active addresses has declined by 16.82% to around 462,390, suggesting network activity has slowed. The number of active addresses has hovered between 335,000 and 668,000 since September, surpassing the 600,000 mark several times since the November US elections. Related Reading: Solana Risks Further Drop Amid $180 Support Retest Is The SOL Memecoin Fiesta Over? Nonetheless, BTC transactions recorded a 42.33% increase during the past day, surging to approximately 453,600, which signals a demand for block space.   Lastly, the on-chain analytics platform also revealed that it will introduce Token God Mode and Nansen Profiler for BTC in the coming weeks to offer deeper insights into wallet behaviors, transaction flows, and market trends. Featured Image from Unsplash.com, Chart from TradingView.com

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Bitcoin Data Reveals No Significant Panic Selling In The Market Shakeout Or Trend Shift?

Bitcoin faced a sharp retrace yesterday, dropping 8% from its all-time high of $108,300 after the Federal Reserve announced a 25 basis point rate cut alongside a revised policy signaling fewer cuts in 2025. Despite the drop, Bitcoin managed to hold above $98,000, a critical liquidity level that analysts are closely monitoring. Related Reading: On-Chain Metrics Reveal Cardano Whales Are Buying The Dip Details This recent price action raises a pivotal question: is this the start of a more significant correction or merely a shakeout to fuel the next leg of Bitcoin’s rally? CryptoQuant analyst Axel Adler provided key insights, noting that no substantial panic selling is evident in the marketa signal that investor confidence remains intact for now. Bitcoin’s resilience at current levels suggests the market is recalibrating following the Feds latest moves. As traders and investors digest these developments, all eyes are on whether Bitcoin can recover momentum and push back toward its previous highs or if deeper retracements are on the horizon. With market sentiment hanging in the balance, the coming days will be crucial in determining Bitcoin’s next direction. Bitcoin Remains Strong Despite the recent dip and a noticeable shift in market sentiment, Bitcoin remains resilient above key liquidity levels, maintaining its long-term bullish structure. The price drop, sparked by broader market reactions to the Federal Reserves policy announcement, has raised concerns, but Bitcoin’s ability to hold critical support underscores its underlying strength. Top CryptoQuant analyst Axel Adler recently shared data on X, shedding light on the market’s current dynamics. According to Adler, no significant panic selling is evident, even after Bitcoin’s sharp decline.  He highlighted a chart tracking the BTC short-term holder profit-loss to exchanges, revealing that this metric is currently at a higher level than seen during early December selling events. This indicates that the recent sell-off may have been less driven by fear and more of a strategic shakeout. This shakeout could serve to generate liquidity and provide the necessary momentum for Bitcoins ongoing rally. However, he also cautions that this could mark the beginning of a broader correction that might take time to fully develop. Related Reading: Solana Bull Flag Signals A Breakout To $300 Analyst Shares Key Levels The coming weeks will be pivotal for Bitcoin. As the market stabilizes, traders and investors are watching whether Bitcoin can reclaim higher levels or if further downside consolidation is on the cards. Price Action: Technical Levels To Hold Bitcoin is currently trading at $101,800, following a successful test of local demand at $98,695 earlier today. The price structure remains intact, with Bitcoin forming a clear pattern of higher highs and higher lows, signaling sustained bullish momentum. Despite the recent volatility, the market sentiment continues to lean optimistic as BTC holds above critical support levels. For Bitcoin to maintain its upward trajectory, a decisive push above $103,600 is essential. This level served as a significant pivot last week, marking a key zone for both buyers and sellers. Breaking through this resistance would likely signal renewed momentum, setting the stage for further gains as Bitcoin eyes new highs. However, failure to break above $103,600 could lead to a shift in sentiment. If BTC also loses the $100,000 psychological level, it would likely confirm the start of a broader correction. Such a scenario could drive the price toward lower support zones as the market recalibrates. Related Reading: Ethereum Whales Load Up: Bullish Sign Or Bear Trap? The next few days will be crucial in determining Bitcoins near-term direction. Traders are closely watching the $103,600 resistance and $100,000 support levels, as these thresholds will dictate whether BTC continues its rally or enters a corrective phase. Featured image from Dall-E, chart from TradingView

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On-Chain Metrics Reveal Bitcoin Demand Is Growing Can BTC Break ATHs In Q4?

Bitcoin surged over 5% yesterday, following a positive day across the crypto market. This sudden price boost has sparked optimism among investors and analysts, anticipating even bigger gains in the coming months. Market sentiment is improving alongside price action, fueling hopes for a sustained rally. Key data from CryptoQuant suggests that Bitcoin demand is rising, supporting [...]

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