On-chain metrics for Bitcoin suggest that the flagship cryptocurrency could be in for some massive price moves in the short term. After experiencing difficulties breaking the $27,600 resistance level following dips from above $28,000, crypto experts have opined that BTC could flip to a new support. On the other hand, new impetus could propel the asset past its year-to-date high of $31,000.
Glassnode lead analyst James Check, who goes by the pseudonym “Checkmate” on Twitter, noted that Bitcoin’s Sell-side Risk ratio is approaching all-time lows. This indicates that investors are not keen on spending coins that are in profit or loss within the current price range, which usually happens when sellers on both sides are exhausted, suggesting that big moves are coming.
Moreover, Check stated that Realized Profit and Loss metrics are literal Bitcoin analysis super powers that offer insight into the sentiment, capital flows, and behaviour patterns of BTC holders.
The analyst also suggested that Bitcoin typically has a 12ish month reaccumulation period after a bottom (if that is indeed what is in place). He added that this period could see some volatile action between the $40k and $22k range, however, noted that it is largely directionless.
At the time of writing, BTC was trading around $26,400 and was about 3% down in the past 24 hours.
