The Bitcoin (BTC) outlook shows signs of improvement as Stablecoin’s liquidity increases and key market indicators show potential reversals of recent deep corrections.
Encryption Highlighted A significant increase in Tether USD (USDT) market capitalization usually leads to an increase in Bitcoin prices.
USDT’s market capitalization has increased by $5.755 billion over the past 60 days, exceeding the simple 60-day moving average of $3.46 billion. Historically, the move has shown fresh capital to enter the crypto market and could support price momentum.
moreover, On-chain data It points out that Stablecoin’s overall market capitalization has increased further over the past 60 days, up from $23.9 billion as of March 13th to $226.1 billion. This corresponds to an 11% increase.
However, liquidity injections do not cause short-term rebounds. Crypto market capitalization has dropped 3.2% in the past 24 hours to $2.72 trillion. Meanwhile, BTC is trading at $80,411.98, down 3.3% over the same period.
Unsold territory
At the same time, on-chain data suggests that after a strong revision period, Bitcoin reached the zone in which it was sold.
Crypto Dan, Community Manager in Korea It was pointed out The proportion of Bitcoin holdings for less than a month rose sharply in March and December 2024, reaching 23% and 24.5%, respectively.
This pattern precedes the revision, increasing the market value to 1.8, bringing it closer to the 2024 revision to a low of 1.71. If Bitcoin is classified into the $70,000 range, the MVRV ratio is above the level seen in past correction declines.
However, market sentiment has been significantly weakened, with Altcoins giving up much of the profits made over the past year. This suggests that further declines may not be necessary to reset the market.
Market conditions remain difficult, but entering the oversell zone increases the chances of rebounding.
The final stages of the upward cycle often lead to increased risk and investment difficulties, but as sales pressures drop, the chances of a price recovery increase.
Crypto Dan highlighted the strength and magnitude of rebound, whale movement, and on-chain data changes as key factors to monitor in the coming period. Furthermore, correlations with traditional stock markets and macroeconomic trends shape the trajectory of Bitcoin.
Finally, he evaluated it was too early to conclude that the market had entered a full-scale bear cycle.
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