- When the price of Bitcoin traded below the psychological price level of $30,000, positive sentiments in the market decreased. According to an analyst, the bull trend continues in the market.
- Although the price of BTC has been trading within a narrow price range since April, reserves on exchanges continue to decline.
- At the time of writing, BTC’s exchange reserves were 2.08 million BTC. This represents a 1.4% decrease based on the 30-day moving average.
Positive sentiments for the price of Bitcoin are decreasing, but the bull trend is not yet over; According to an analyst, there is no threat to the bull trend.
Positive Sentiments Decreased for Bitcoin Price, But…
When the price of Bitcoin traded below the psychological price level of $30,000, positive sentiments in the market decreased. However, according to CryptoQuant analyst, the bull trend continues in the market. The analyst evaluated Bitcoin’s On-Chain Losses Ribbon and determined that BTC reached a local bottom point between December 2022 and January 2023 and started a bull trend since February.
BTC’s On-Chain Losses Ribbon indicator is a technical indicator that uses moving averages to measure the amount of lost BTC. The four moving averages used are the 180-day moving average, 210-day moving average, 240-day moving average, and 270-day moving average.
When the Ribbon is narrow, it indicates that the amount of lost BTC is low. This is a bullish signal indicating that there is no excessive selling and that prices still have the potential to rise. Conversely, when the Ribbon is wide, it indicates that the amount of lost BTC is high and that the market is oversold.
Additionally, when the Ribbon turns from top to bottom, a bullish signal emerges as it indicates that the price of the asset has bottomed out. Similarly, when the Ribbon starts turning from bottom to top, it usually means that the price of the cryptocurrency is approaching a peak and a decline is imminent.
The analyst stated the following about the subject:
“In February 2023, a rapid decline started in the Ribbon, indicating that the bull trend is developing steadily. The danger for bulls in terms of this indicator can arise when the Ribbon reaches its conditional bottom point and then stabilizes its position and starts turning from bottom to top. Currently, nothing threatens the bull trend.”
The Market Provides Stable Support for Bitcoin
Although the price of BTC has been trading within a narrow price range since April, reserves on exchanges continue to decline. BTC’s Exchange Reserves metric tracks the amount of BTC held on cryptocurrency exchanges.
An increase in BTC’s Exchange Reserves metric usually indicates increasing distribution that puts downward pressure on the price. However, a decrease indicates that only a small number of sales are recorded, leaving the potential for the cryptocurrency’s price to rise.
At the time of writing, BTC’s exchange reserves were 2.08 million BTC. This represents a 1.4% decrease based on the 30-day moving average. Despite the significant resistance at $30,000, the number of open positions on derivative exchanges also increased.
Additionally, BTC’s Open Interest amount evaluated based on the 30-day moving average increased by 6%. According to CryptoQuant, it was $9.51 billion at the time of writing.
