Bitcoin Price has reclaimed upward traction, reduced above $ 105,000 after a temporary dip below $ 104,000 earlier today. This increase of 1.2% compared to the past hour reflects renewed optimism in the market.
In the midst of these price performance, crypto then, a cryptoquant analyst, shared his analysis of data on chains and market behavior that can form the Bitcoin process in the coming weeks and months.
Bitcoin Bullish Market but caution
According to then, the amount of Bitcoin that is held for less than six months remains a remarkable growth with every market cycle. This trend suggests that as the profession of Bitcoin broadens, new capital flows – in particular of the expected introduction of Bitcoin Spot ETFs – can stimulate demand.
Then it is expected that both institutional and retail investors will solve their involvement because these ETFs will receive a grip in the first half of 2025.
Although the current indicators remain bullish, Crypto also warns that the increasing interest in Bitcoin and Altcoins, in combination with an influx of new investors, can indicate that the current cycle can approach its peak.
If Bitcoin drifts his all time with a considerable momentum, and altcoins follow, this can cause a wave of inflow that can mark the last phases of the cycle. Then investors recommend considering risk management strategies.
The cryptomarkt remains bullish … but it’s time for caution
“If Bitcoin breaks his all time with strong momentum and follow Altcoins, which causes a wave of new inflow of investors, this may indicate that the end of the cycle is approaching.” – By means of @Dancoininvestor… pic.twitter.com/NVKB8LY1DE
– Cryptoquant.com (@Cryptoquant_Com) January 31, 2025
Inflow of shops and whales vary
This warning note is reinforced by observations of another cryptoquant analyst, Darkfost, that highlights A discrepancy in the behavior of retail investors and whales.
According to recent Binance data, retail investors have considerably increased their BTC deposits in the past month, with the inflow reaching around 6,000 BTC. The whale activity on Binance, on the other hand, has decreased, with their BTC inflow to around 1,000 BTC – a four -time decrease.
Darkfost notes that retail investors often use exchanges to liquidate their possession, while the reduced inflow of the whales suggest that they hold their bitcoin.
This contrasting behavior provides insights into a broader market sentiment: retail participants seem to be eager to take advantage of profit in the short term, while larger, more established investors are maintaining a more cautious position.
Historically, following whale behavior instead of trends in retail has yielded a more reliable signal for long -term market movements. Darkfost emphasized this comment:
This is a perfect example of the contrasting behavior between whales and retail traders and it is often considered a better choice to follow whales instead of retail investors
Featured image made with Dall-e, graph of TradingView
Credit : www.newsbtc.com
