As the second week of December begins, the trading price of Bitcoin is stable at around $17k, which is because investors lost their interest in the assets due to crashes in U.S stock markets.
The bears were in strong spirits as they kept bashing the bulls. However, an analysis published by On-chain indicates an encouraging sign that investors have slowed down selling Bitcoin.
This shows that selling pressure on Bitcoin has eased a bit. This can help Bitcoin recover its price further.
Indicators of Bitcoin’s Price Recovery
On Monday evening Bitcoin’s price was around $17,034, this was the first time after weeks that Bitcoin has achieved price stability.
Moreover, the number of market indicators that predicts the level of pressure and on-chain investors’ behavior has shown a steadiness in the pace of selling.
The reason that investors have started to hold Bitcoin is that they are confident that Bitcoin’s (BTC) market price can surge in the short. The selling-off pattern that appeared following the collapse of FTX has caused investors losses of over $4.4 billion.
According to data shared by Glassnode, Bitcoin’s realized earnings vs losses ratio has reached an all-time low. Over the last couple of weeks, investors have suffered losses that were 14 times higher than the profits they had earned over the past few weeks.
But, despite all these losses, investors once more are holding Bitcoin, as they can sense that Bitcoin is on the rise again.
On-Chain Data Shows Steady Decline in Realized Losses
After intense market volatility and price turmoil which started after the FTX bankrupt finally seems a bit less intense. The data concludes that the current price of Bitcoin (BTC) is above the adjusted value and the realized limit is decreasing.
This is a clear sign that realized losses are on the downside, eliminating surplus liquidity produced by overly leveraged entities.
As compared to the rest of the previous week, Monday proved to be more bullish. It saw the price of BTC remains stable.
This was the first time after 2 weeks that bears were unable to bring the price of Bitcoin below the $16,000 mark. Bitcoin currently holds strong support of the market. Just on Sunday, the trading price of BTC crossed the $17 mark.
Bitcoin’s Realized Cap Hints Liquidity has been drained
As of now, BTC’s realized cap has increased by 2.6%, implying that Bitcoin’s all-time high has been traversed. This has established a strong bullish trend for Bitcoin in the coming days.
Bitcoin’s current realized market cap is 17%. According to this metric, the present cycle has witnessed the third-biggest relative capital outflow.
This is arguably the most solid indicator of Bitcoin’s future market price. Experts are confident that Bitcoin will once more show a strong resurgence in its market price.
A look at the data suggests that the price of BTC will soon hit the $20k mark. That is the peak of resistance for this weekend.
However, if Bitcoin touches the $20k mark in the next few days, then by the end of this week Bitcoin go up to a new level of resistance above the $20k mark. The bears on the other hand are likely to be active to keep the Bitcoin price rise rigid.
However, the on-chain analysis shows that investors’ market sentiment is gradually drifting toward the optimistic extremes.
As the market is opting to be bullish on Bitcoin, BTC is on its way to a steady price recovery. Those who are in the possession of BTC should not go for short-term selling.
As market volatility is still high, the Bitcoin technical outlook seems pretty solid.
If Bitcoin somehow manages to pull out a great recovery it is obvious that all the other cryptocurrencies will follow a similar pattern that will revive the investors’ trust in the market. Bears should watch out for Bitcoin’s future market price.