– Cryptoquant.com researchers suggest Bitcoin prices may have hit a local low, indicating potential for positive price movement.
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– Their recent report highlights that large sellers seem to have exhausted their selling power, which could signal a price rebound.
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– Significant selling in the past week, including large transactions from the German government and Mt Gox creditors, led to $2.5 billion in realized losses.
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– Seller fatigue is evident as unrealized profit margins hit -17%, a pattern seen after the FTX collapse in 2022.
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– Despite recent losses, Bitcoin prices surged to $67,000, with positive indicators like the Profit & Loss (P&L) Index showing recovery signs.
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– The Bull-Bear Market Cycle also points to a potential uptrend in Bitcoin prices.
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– However, stablecoin liquidity, particularly from tether (USDT), has not increased sufficiently to support a sustained rally.
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– USDT’s market cap growth remains near zero, unlike the 6.6% growth earlier in the year when Bitcoin exceeded $70,000.
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– For Bitcoin to continue rising, stablecoin liquidity and demand need to increase significantly.
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While immediate prospects are optimistic, sustained price increases depend on improved market conditions and stablecoin liquidity.