Exploration $BTC
Key Points
Bitcoin has recently experienced price fluctuations in the $90,000 to $92,000 range, with mixed market sentiment. Overall,
1. Ecosystem Growth: The Bitcoin ecosystem is expanding with the development of second-layer solutions and the gradual adoption by institutional investors.
2. Signs of Selling Pressure: Long-term holders are taking profits, and the inflow of whale funds indicates potential selling pressure.
3. Bearish Momentum: Technical indicators show a decline in momentum, making it difficult for prices to maintain key levels.
Highlights
1. Ecosystem Growth: The Bitcoin ecosystem is continuously expanding through second-layer solutions like Bitcoin Hyper, having raised over $28 million to enhance decentralized finance (DeFi), NFTs, and gaming applications.
2. Institutional Adoption: Texas is actively promoting state-based Bitcoin reserves, purchasing Bitcoin exchange-traded funds (ETFs) for $5 million as a placeholder investment, indicating growing interest from institutions and governments.
3. Undervalued Signals: Bitcoin's 2-year MVRV ZScore has reached a historic low, typically indicating severe undervaluation and the arrival of major cycle turning points, although the current price is significantly above historical lows.
Risks
1. Profit Taking: Long-term holders (LTHs) are undergoing significant profit-taking, with the spent output profit ratio (SOPR) of long-term holders to short-term holders reaching 2.63, indicating a profit-taking phase, which historically suggests a broader market correction is imminent.
2. Whale Outflows: In the past 30 days, whales have flowed $7.5 billion into exchanges, the highest level in a year, indicating potential selling pressure, similar to past periods of stress and volatility.
3. Bearish Technical Indicators: The MACD histogram remains negative, and the 7-period EMA has crossed below the 25-period EMA, indicating sustained bearish momentum and downward pressure in recent trading.
Community Sentiment
1. Diverging Opinions: Community discussions show a divergence in market views, with some traders expecting significant price increases, while others warn of a possible retest of lower support levels and increased volatility over the weekend.
