Why Bitcoin [BTC] Investors are torn between two poles right now
The last case in Bitcoin [BTC] Currency reserves may have left the top-ranked cryptocurrency’s investors in a lot of confusion. In fact, based on observations made by Maartunn, a CryptoQuant analyst, over 60 BTC have left the shores of the reserves. He pointed out that all these expired in just three days.
In addition, the analyst noted that it was the highest amount BTC had recorded in many months. CryptoQuant also revealed that BTC reserves, which was 2,305,182 on September 29, had fallen. In fact, after a significant decline, the same had weakened to 2,266,865 at press time.
Source: CryptoQuant
On the one hand, the outflows can result in a massive sale. However, Maartunn had other ideas. The analyst argued that events like these result in more market demand for BTC.
Incidentally, it may be that his claim is valid. With a lower coin supply on exchanges, investors did not appear to be pressured to limit their holdings.
Source: CryptoQuant
Despite the willingness to stick with HODLing, there are no clear indications that BTC has nearly the bottom. Although current market conditions may not be favorable, Maartunn’s claim of greater demand has some solid ground.
Between possibilities and hopelessness
According to Glassnode, the number of addresses with 0.01 BTC reached another all-time high (ATH). The monitoring platform on the chain noted that the previous ATH was surpassed on October 1st. It also reported that the current ATH is as high as 10,758,931.
📈 #Bitcoin $BTC Number of addresses with 0.01+ coins just hit an ATH of 10,759,852
Previous ATH of 10,758,931 was observed on October 1, 2022
See calculation: pic.twitter.com/uf7tYu3EeB
— glassnode alerts (@glassnodealerts) 2 October 2022
Subsequently, other areas did not match the demand. Glassnode also revealed that the number of transactions, which had previously peaked at 286,503, had fallen to 241,812.
This indicated that BTC exchange deposits and withdrawals may not be as high as reported. Furthermore, the number of transactions may also need to be valued.
This will mean that there is actually greater interest across the market. As such, investors may be torn between confirming the bottom or a further downside.
Source: Glassnode
Stand up, but be warned
Here, it is worth pointing out that another CryptoQuant analyst, MAC_D, believed that the Estimated Level Ratio (ELR) may have confirmed an increase in BTC demand. However, he had one warning that ELR rises above the press time level.
A further increase could lead to price inconsistency because ELR affects volatility and open interest. Therefore, he believed that balancing the open rates and outgoing foreign exchange reserves would do more good than harm to BTC’s price.
Source: CryptoQuant
At press time, BTC was trading at $19,352. Its 24-hour trading volume recorded a 56% decline. Thanks to these findings, BTC investors hoping for a break of $20,000 may have to wait a little longer.
