Will Bitcoin’s Bull Run Pause? An On-Chain Data Analysis

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Is Bitcoin’s Bull Run Pause?

A look at the on-chain data

Bitcoin Liquidity Zone - 180 days / DOMINANDO
Bitcoin Liquidity Zone – 180 days / DOMINANDO


Bitcoin 180-day liquidity area (derivatives) data suggests that BTC is currently on the verge of a price correction. This data is a liquidity area indicator that tracks the net delta position and open interest profile over the last six months on various exchanges. When the price turns blue, you can read it as a sign of high leverage of long positions in the market.

XRP advocate John Deaton has expressed his hesitation about the cryptocurrency market’s apparent rise.

“Okay I have to admit that when everyone is saying the bull market is back it makes me hesitant. Buying is an easy decision. Selling is by far the much harder decision. If we’re losing, we don’t want to admit we got it wrong, so we don’t sell.”



A contributor to on-chain analytics platform Cryptoquant also analyzed that a short-term correction could be coming as the price of Bitcoin (BTC) surged. Contributor ‘Eralp Buyukasian’ wrote: “There may be a belief that Bitcoin’s rise will continue. However, the $35,000 to $60,000 price level is where the risk lies from a technical and on-chain perspective,” he said.

“The overbought relative strength index (RSI) has risen to 87 on the Japanese chart. “The overbought RSI has risen to 87 in Japan, which indicates that price growth is overheated.”

“The funding ratio is also at a high level, indicating a large number of long positions. Typically, a correction occurs within four to five days of a high funding rate.” “The latest data shows that there are more Bitcoin deposits on exchanges than withdrawals. “All things considered, we are likely to see a small correction around the $32,000 level rather than a major drop,” he added.

Fear & Greed Index
Fear & Greed Index

Cryptocurrency data provider Alternative’s self-estimated “Fear-Greed Index” dropped one point from the previous day to 71. It remained in the greed phase.


Market Data

According to data from Into the Block, 82% of all cryptocurrency wallet addresses that currently hold bitcoin are in the “profitable state. On the other hand, 11% of all Bitcoin holders are carrying unrealized losses, while 7% are breaking even.

BTC 7D graph coinmarketcap

BTC is trading at around $3.46K, up 22% from a week ago, according to Coinmarketcap. Compared to a week ago, it is up 1.25%.


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