Bitcoin On-Chain data shows a silent shift: Declining volume signals a bull season!
CryptoQuant analyst Maartunn stated that the volume profile has cooled down by examining the Nexo Spot Volume Bubble Map after the recent correction in Bitcoin prices. The Nexo Spot Volume Bubble Map, which shows the trading volume in the market, indicates periods of volume increase and cooling down. The analyst explained that the cooling in the volume profile on the chart coincided with the end of price movements, the weak hands withdrew from the market, and while trading activity decreased, prices stabilized.
After the cooling period observed at the end of 2023, the BTC price entered an accumulation phase and then experienced a rally that brought the BTC price to ATH levels at the beginning of 2024. In the map shared by the analyst, it was indicated that after the decline in volume, the accumulation phase began, followed by upward movements after horizontal movements. Evaluating the data, the analyst stated that despite the price decline, green cooling signals have emerged as in the past, and this is a sign of a bull market.
Stablecoin data shows Bitcoin's bottom level
According to the stablecoin analysis published by analyst Darkfost, a potential bottom level has formed in Bitcoin. The analyst discussed the clear relationship between stablecoin data and market dynamics, analyzing BTC's value based on the Stablecoin Supply Ratio (SSR) graph. A rapid decrease in the SSR ratio indicates that BTC has remained undervalued compared to market liquidity.
Currently, the decrease in SSR following the recent Bitcoin correction indicates that this is the strongest drop seen in this cycle, showing that Bitcoin's value has remained below the market. The historical imbalance between liquidity and BTC value has historically occurred at market bottoms. Such SSR signals are observed during BTC bottom formation periods in historical patterns. During these periods, BTC selling pressure decreases and the accumulation phase begins.
#defi
