- An assessment of BTC On-Chain Losses Ribbon showed that there is still an uptrend in the market.
- A drop in BTC’s FX reserves signals a slowdown in the coin’s sell-offs.
As bitcoins [BTC] When the price traded below the psychological price level of $30,000, the positive sentiment in the market faded. However, pseudonymous CryptoQuant analyst BaroVirtual has found that the uptrend in the market continues.
Read Bitcoins [BTC] Price prediction 2023-2024
The analyst reviewed the leading coin’s on-chain Losses ribbon, noting that BTC’s price hit a local bottom between December 2022 and January 2023 and has been in an uptrend since February.
Source: CryptoQuant
The BTC On-Chain Losses Ribbon is a technical indicator that uses moving averages to measure the amount of BTC in loss. The four moving averages used are the 180-day moving average, the 210-day moving average, the 240-day moving average, and the 270-day moving average.
If the band is narrow, it means there is a small BTC loss. This is a bullish signal as it suggests that the market is not oversold and there is still room for price increases.
On the other hand, if the band is wide, it means that a large amount of BTC is being lost and the market is in an oversold state.
Furthermore, when the band rotates from above to below, a bullish signal presents itself as it signals that the price of the asset in question has bottomed. Additionally, when the band starts rotating from the bottom up, it usually means that the coin is nearing a price high and a drop is imminent.
BaroVirtual noted:
“In February 2023, the Ribbon started a rapid decline, signaling a steady development of the uptrend. The danger for bulls from the point of view of this indicator can appear only when the band reaches its conditional lower point, then starts to fix its position and turn from the bottom up. I reiterate that nothing threatens the uptrend at the moment.”
The market is steadfastly supporting the number one coin
Even though BTC’s price has remained in a tight range since April, its foreign exchange reserves continue to decline. BTC’s Exchange Reserves metric tracks the number of King Coins held on cryptocurrency exchanges.
Source: CryptoQuant
The surge in BTC exchange reserves signals increased distribution, which often results in downward pressure on the price. However, a drop means there will be few sell-offs, leaving room for the coin price to rise.
At press time, BTC foreign exchange reserves totaled 2.08 million BTC. On the 30-day moving average, that figure is down 1.4%, data from CryptoQuant shows.
Despite the significant resistance BTC faces at $30,000, the number of open trades for derivatives exchange trading pairs has also increased. Also based on a 30-day moving average, BTC open interest is up 6%.
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According to CryptoQuant, it was $9.51 billion at press time.
Source: CryptoQuant
As the reporting period was dominated by positive funding rates, investors continued to bet on price growth.
Source: CryptoQuant
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