Analyst Utilizes Supply And Demand Principles To Determine Bitcoin Price

For analysts and investors alike, comprehending the variables that influence price action in the complex world of cryptocurrency markets is essential. Ali Martinez, a well-known cryptocurrency expert, has recently provided insights into the fluctuations in the price of Bitcoin by applying the basic economic theory of supply and demand.  Understanding Bitcoin Prices Through Supply And Demand It is worth noting that any asset’s price movement, including cryptocurrencies, is determined by the fundamental rules of supply and demand. An asset’s price tends to decrease when supply outpaces demand, while prices typically increase when supply cannot keep up with demand.  Related Reading: The Hidden Forces Behind Bitcoin Price: Latest Insights From On-Chain Data Thus, Ali Martinez has deduced the crypto asset’s price and holders’ behaviour by applying the method and other on-chain metrics. Martinez’s analysis demonstrates how fluctuations in the market’s buying interest and the availability of Bitcoin are key factors influencing its price trajectory. According to Martinez, Bitcoin’s Realized Cap witnessed a significant increase mid-way through March when BTC hit a new all-time high of $73,000. This indicated that the majority of BTC’s long-term holders were likely yielding gains at the time. As a result, several investors sold their holdings, which led to a sharp rise in realized profits. Following realized profits in March, long-term holders felt safe adding over 70,000 BTC to their investments at these prices. Meanwhile, when the market’s growing supply of Bitcoin exceeded demand, the coin saw a substantial correction from the $73,000 level to the $57,000 level.  Given that short-term holders are more likely to sell their holdings due to price volatility, this decline took Bitcoin below its realized price for short-term holders, inciting fear in the market. However, despite investors’ concerns, the short-term holder’s Realized Price at the $65,500 level acted as an accumulation point. On the basis of this principle, Martinez believes the likelihood of Bitcoin continuing its upward trajectory will only increase when demand for the cryptocurrency starts to exceed the supply of BTC accessible in the market. Using BTC On Exchanges To Support The Principles Martinez has underscored that the available BTC on crypto exchanges can be used to confirm these supply and demand laws. He further noted that over 30,000 BTC have been moved to private wallets for long-term storage in May, indicating confidence among holders in the potential worth of Bitcoin. Related Reading: Bitcoin Long-Term Holders Accumulating Like In 2021: Is BTC Ready For A 15X? Observing Bitcoin’s price using the MVRV Extreme Deviation Pricing Bands, Martinez cited a retracement above the +0.5 pricing band at $64,600. Such an upswing has historically caused BTC to test the pricing range of 1.0, which is backed by increasing demand. Meanwhile, this price range at the moment is roughly lingering at $77,000. Presently, the price of Bitcoin is trading at $66,275, indicating an over 5% increase in the past week. Although prices are up, its trading volume has declined by 24%, while its market cap is up by 0.23%. Featured image from iStock, chart from Tradingview.com

View Details

Bitcoins realized profit/loss ratio shows market satisfaction with current price levels

Bitcoin’s yearly realized profit/loss ratio measures the proportion of realized profits to realized losses over a rolling one-year period. It’s an underused but significant metric as it can act as an indicator of market sentiment. When the ratio is high, it suggests that more investors are realizing profits than incurring losses, which is typically characteristic […]

The post Bitcoin’s realized profit/loss ratio shows market satisfaction with current price levels appeared first on CryptoSlate.

View Details

Bitcoins MVRV ratio shows LTHs move the market while STHs react

The market value to realized value (MVRV) ratio is one of the most important indicators for analyzing the Bitcoin market. It measures the ratio between the market cap (the current price of Bitcoin multiplied by the total number of coins in circulation) and the realized cap (the sum of the value of all coins in […]

The post Bitcoins MVRV ratio shows LTHs move the market while STHs react appeared first on CryptoSlate.

View Details

Bitcoins realized profit hits ATH but market keeps accumulating

Realized profit represents the cumulative profit of all Bitcoins moved on-chain, calculated as the difference between the acquisition and movement prices. It’s a direct measure of the profitability for Bitcoin holders, indicating when investors are likely to sell and take profits. On the other hand, the realized cap offers a more accurate representation of the […]

The post Bitcoin’s realized profit hits ATH but market keeps accumulating appeared first on CryptoSlate.

View Details

Short-term Bitcoin holders signal positive market momentum as BTC breaks $30K

In the midst of Bitcoin's recent surge past $30,000, CryptoSlate's detailed analysis of short-term holders (STHs) and their realized profit/loss (RPL) ratio reveals crucial insights into market trends. As the STH RPL ratio experiences a positive shift, history shows this could signal a significant turning point in the market. But what does this mean for the upcoming market momentum? Find out the implications of this key metric in our exclusive Alpha article...

The post Short-term Bitcoin holders signal positive market momentum as BTC breaks $30K appeared first on CryptoSlate.

View Details

Rising unrealized profits indicate a more optimistic Bitcoin market

The cryptocurrency market is a complex ecosystem, requiring numerous metrics and indicators to gauge its health and predict future trends. One such metric, the Net Unrealized Profit/Loss (NUPL), provides a nuanced view of market sentiment. NUPL indicates market sentiment by highlighting the difference between unrealized profit and unrealized loss in the Bitcoin supply. The ‘unrealized’ […]

The post Rising unrealized profits indicate a more optimistic Bitcoin market appeared first on CryptoSlate.

View Details

Glassnode: Bitcoin Holders Realized 14x More Losses Than Profits Recently

Data from Glassnode reveals Bitcoin holders realized 14 times more losses than profits in recent weeks. Bitcoin 7-Day MA Realized Profit/Loss Ratio Sets New All-Time Low As per the latest weekly report from Glassnode, the realized profit/loss ratio has assumed its lowest value ever recently. Whenever a coin sits idle on the chain and the price of Bitcoin changes, it accumulates some amount of profit or loss, depending upon the direction of the price fluctuation. This profit or loss is called “unrealized” so as long as the coin holds still in the same wallet, but as soon as the holder moves/sells this coin, the total amount of profit/loss it was carrying is then said to be “realized.” The realized profit and the realized loss metrics keep track of such amounts of profit and loss being harvested by investors across the BTC market. Related Reading: For First Time Ever, Bitcoin Hash Ribbon Golden Cross Has Failed Now, the “realized profit/loss ratio” is an indicator that measures the ratio between the current values of these two metrics. Here is a chart that shows the trend in the 7-day moving average of this Bitcoin ratio over the history of the crypto: The 7-day MA value of the metric seems to have been quite low in recent days | Source: Glassnode's The Week Onchain - Week 49, 2022 As you can see in the above graph, the Bitcoin realized profit/loss ratio has plunged deep below a value of 1 following the FTX crash. When the indicator has values in this zone (that is, when it’s less than 1), it means BTC investors are realizing a higher amount of loss than profit right now. In the latest plunge, the metric not only dropped to pretty low values, it in fact recorded a new all-time low. This bottom level corresponded to the loss realization being 14 times more than profit realization. Related Reading: Bitcoin Now Undervalued For 170 Days, How Does This Compare With Previous Bears? From the chart, it’s apparent that deep lows like now have historically been observed at or near bottoms in previous bear markets, which means they have always been at the center of macro market regime shifts. If the same trend follows this time as well, then the current Bitcoin market may also be in the middle of such a shift. BTC Price At the time of writing, Bitcoin’s price floats around $16.9k, up 3% in the last week. Over the past month, the crypto has lost 20% in value. The below chart shows the trend in the price of the coin over the last five days. Looks like the value of the crypto has been trading sideways around $17k | Source: BTCUSD on TradingView Featured image from ???? cdd20 on Unsplash.com, charts from TradingView.com, Glassnode.com

View Details

Bitcoin above $44k spurs market confidence with spike in unrealized profits

As Bitcoin’s price breached the $44,000 mark on Feb. 7, a significant milestone was achieved, signaling a robust recovery to levels seen before the launch of spot Bitcoin ETFs. This price recovery marks a notable comeback and brings a renewed sense of confidence among investors, as evidenced by the accompanying spike in unrealized profits across […]

The post Bitcoin above $44k spurs market confidence with spike in unrealized profits appeared first on CryptoSlate.

View Details

The Bitcoin market faces a critical moment amid soaring unrealized profits

Bitcoin crossed $60,000 on Feb. 28 in a remarkable one-day candle, posting a 20% increase in just three days. However, the short stint at this level means we’ll have to wait another 24 hours before any meaningful on-chain data becomes available. However, the possibility of a correction within the next 24 hours can be analyzed, […]

The post The Bitcoin market faces a critical moment amid soaring unrealized profits appeared first on CryptoSlate.

View Details

Bitcoin price steadies as large holders curb profit-taking in February

Bitcoin’s realized profits for large holdersaddresses holding 10-100 BTC, 100-1K BTC, and 1 K10 K BTCdeclined steadily in February 2025. Data from CryptoQuant showed a significant spike in the second half of January, which saw up to $3 billion in realized profits. However, since January, these holders have progressively realized fewer profits, with February showing […]

The post Bitcoin price steadies as large holders curb profit-taking in February appeared first on CryptoSlate.

View Details

Bitcoin STH Realized Profit Reveals Strong Support Level Time For A Breakout?

Bitcoins short-term price direction remains uncertain as the market struggles to confirm its next move. Analysts and investors are divided, with some calling for a breakout into new all-time highs while others anticipate renewed selling pressure into lower prices. The price has been consolidating in a narrow range for the past twelve days, holding above the $94,000 demand level and facing resistance below the $100,000 mark. Related Reading: Are Meme Coins Hurting Solana? Rising Selling Pressure Sparks Investor Concerns Key data from CryptoQuant reveals that the nearest support zone for BTC is forming between $91,000 and $95,000. This range is reinforced by two critical technical indicators: the 111-day simple moving average (SMA 111D), currently at $95,000, and the Short-Term Holder (STH) Realized Price, which sits at $91,000. These levels suggest that BTC is trading above historically significant support areas, where short-term holders have realized their profits or losses. While the long-term structure remains bullish, investors are growing impatient as BTC fails to reclaim key resistance levels. If Bitcoin can push above $100K in the coming days, analysts expect a rally into price discovery. However, losing support around $94K$95K could trigger increased selling pressure and a deeper correction into lower demand zones. Bitcoin Prepares For A Decisive Move Bitcoins recent consolidation phase has fueled speculation about a potential breakout, with many analysts suggesting that the market is witnessing the calm before the storm. While short-term direction remains uncertain, the long-term bullish structure remains intact, and many expect BTC to make a strong move toward new all-time highs soon. Crypto analyst Axel Adler shared key CryptoQuant data on X, highlighting that Bitcoin’s nearest support zone is forming around $91,000$95,000. This range is significant because it aligns with the 111-day simple moving average (SMA 111D) at $95,000 and the Short-Term Holder (STH) Realized Price at $91,000. These levels represent areas where short-term holders have historically realized profits or losses, making them crucial for maintaining bullish momentum. On the resistance side, Adler notes that Bitcoin faces a key supply zone between $98,000 and $101,000. This area is defined by the aggregate exit prices of holders with a holding period of one week to one month at $100,800 and those with a one- to three-month holding period at $98,200. Related Reading: Ethereum Forms A Bullish Pattern Expert Reveals Short-Term Price Target As BTC continues to trade within this narrow range, investors are closely watching these levels for a decisive breakout. A push above $101K could trigger a rally into price discovery. While losing support at $91K could lead to further downside. BTC Bulls Face A Big Test Bitcoin is trading at $95,600 after nearly two weeks of sideways movement within a narrow range, fluctuating less than 4% in either direction. This extended period of consolidation has left traders on edge, as they await a decisive move in either direction. For BTC to maintain its bullish structure, the $95,000 level must hold. This price point aligns with technical support, and a break below it could signal strong selling pressure. Bulls face a critical test at this stage, as they must defend this support and initiate a push above key resistance levels. To confirm a breakout, Bitcoin needs to reclaim the $98,000 mark and, ultimately, the psychologically significant $100,000 level. A successful move above these levels would provide the momentum needed to challenge all-time highs and re-enter price discovery. However, failure to hold $95K could trigger a downside move, with BTC potentially testing support zones closer to $91K. Related Reading: Dogecoin Pulls Back To The Golden Ratio Analyst Expects A Bullish Reversal As Bitcoin consolidates, traders remain cautious, watching for volume spikes and increased buying pressure to confirm the next price movement. The coming days will be crucial in determining whether BTC resumes its uptrend or faces further correction. Featured image from Dall-E, chart from TradingView

View Details

Bitcoin Realized Profit Hits ATH At $443 Million Local Top Or Continuation?

Bitcoin has surged past the $99,800 mark, setting a new all-time high as it inches closer to the psychological $100,000 barrier. While the milestone signals remarkable strength, the price has yet to claim this key level, leaving investors in suspense. Market demand remains robust, fueling optimism that Bitcoin will soon break above the $100,000 threshold. [...]

The post Bitcoin Realized Profit Hits ATH At $443 Million Local Top Or Continuation? appeared first on Crypto Breaking News.

View Details

Bitcoin Profit Taking Relatively Muted Amid $93K Rally Can BTC Climb Higher?

Bitcoin (BTC) recently reached a new all-time high (ATH) of $93,477, as the leading digital asset inches closer to the highly anticipated $100,000 target. Notably, the ongoing price rally has seen relatively muted profit-taking, fueling hopes that BTC has further room to surge. Low Profit-Taking For Bitcoin In Current Cycle According to a recent report [...]

The post Bitcoin Profit Taking Relatively Muted Amid $93K Rally Can BTC Climb Higher? appeared first on Crypto Breaking News.

View Details

Bitcoin Trader Unrealized Profit Margins At High Levels Risk Of Correction?

Bitcoin set a new all-time high yesterday, reaching $93,483, continuing its impressive rally without significant setbacks. Over the past nine days, the crypto leader has surged with minimal dips, not falling more than 5% during this bullish phase. This relentless price action has drawn widespread attention as Bitcoin defies expectations and resists any notable pullback. Related Reading: Chainlink Whales Waking Up Data Shows Signs Of Accumulation Key data from CryptoQuant reveals that traders’ unrealized profit margins are climbing, indicating that the market may be nearing a short-term peak. High unrealized profit levels typically signal that a correction could be on the horizon as investors look to secure gains. However, given the current strength of Bitcoin’s price action, the timing and scale of any correction remain uncertain. With Bitcoins price momentum showing few signs of slowing down, the coming days will be crucial in determining whether the market can sustain these levels or if a healthy retrace is in store. Investors are closely watching for potential entry points and key support levels, knowing that even minor dips could trigger strong buying interest as Bitcoins bullish phase persists. Bitcoin Strong Move About To Pause? Bitcoins price action has been remarkable, surging 38% since the U.S. election and capturing widespread attention with its unrelenting bullish momentum. However, this aggressive rally may be approaching a temporary pause, as data hints at a potential correction.  CryptoQuant’s head of research, Julio Moreno, recently shared a compelling chart highlighting Bitcoin traders unrealized profit margins, which have reached 47% a level that has often preceded price pullbacks. High unrealized profit margins can indicate that traders are sitting on significant gains, raising the likelihood of profit-taking that could trigger a market cooldown. Morenos analysis notes that this metric tends to correlate with a heightened risk of a correction when it surpasses certain thresholds. For instance, prior peaks in March reached 69%, while December 2023 saw unrealized profits hit 48%, both instances that led to notable corrections shortly after. Still, the current 47% level suggests that, while caution may be warranted, Bitcoins bullish phase still has room to run. Past cycles demonstrate that the market has tolerated even higher unrealized profits before reversing. The data implies that while a pullback may be on the horizon, Bitcoin could continue its upward trend a bit longer before any significant cooling occurs. Related Reading: Dogecoin Could Target $2.4 If Price Aligns With Macro Pattern Details In the coming days, investors will be watching closely for any signs of a consolidation phase or a potential retracement. Should Bitcoin maintain strong support levels, continuing this bull run remains plausible. However, if profit-taking intensifies, a correction could provide a healthy reset for Bitcoin to gather momentum for future gains. BTC Breaking ATH Almost Every Day Bitcoin has shattered its all-time high seven times over the past eight days, fueling a highly bullish sentiment across the market. Currently trading at $90,620 after peaking at $93,483, Bitcoins price action remains strong, signaling sustained buying momentum. This surge has set a notably optimistic tone, but a brief correction period could provide a necessary reset after such an extended upward push. Given the high buying pressure, a short-term pullback to establish a new market equilibrium would be a healthy development. This could allow Bitcoin to test lower demand levels and establish stronger support areas for its next leg up. If profit-taking intensifies in the near term, BTC could revisit the $85,000 mark as it seeks to stabilize. Related Reading: Bitcoin Weekly RSI Entering Power Zone Last Time BTC Soared 80% In the coming days, investors will likely watch for this potential consolidation phase to gauge Bitcoins resilience. A successful retest of support around $85,000 would reaffirm confidence in the ongoing bull market, providing a stronger foundation for Bitcoin to push toward even higher levels. Overall, while the trend remains bullish, a balanced correction may be just what the market needs to maintain its momentum over the long term. Featured image from Dall-E, chart from TradingView

View Details