Morgan Creek Digital co-founder Anthony Pompliano says blockchain indicators indicate that the correction in the Bitcoin market, which drove the cryptocurrency's price below $50,000, is coming to an end. Bitcoin market correction is coming to an end In a new edition of The Pomp Letter, Anthony Pompliano used data provided by on-chain analyst Will Clemente to explain that the correction on BTC is coming to an end. He pointed out that SOPR (Spent Output Profit Ratio), an indicator that measures the net profit or loss of market participants, is starting to approach the level where buyers usually appear. - Any dips below the 1 level have historically been great buying opportunities. In the January correction, the SOPR reset just above 1, and in the February correction, the SOPR made a full reset below 1. Now the SOPR is approaching the full reset level, which means price has reached or is very close to reaching the bottom of the correction, he said. Another measure regarding the chain that Pompliano is watching is what miners are doing. Currently, it can be seen that they are intensively accumulating bitcoins during declines. - Accumulation by miners has clearly become a trend over the past few weeks. This indicates two things: miners are expecting higher prices and are reluctant to sell their holdings now, and the fact that they are able to cover their CAPEX (capital expenditure) without having to sell coins on the market, he said. Whale numbers are on the rise Pompliano is also seeing an increase in the number of wallets where someone has deposited between 100 and 1,000 BTC. There are more and more such addresses. - The pink line [shows] addresses with 0.1 to 1 BTC, these have been steadily accumulating [BTC] over the past few years. But the green line is addresses with balances from 100 to 1,000 BTC, this one went into a parabola in 2021. These portfolios indicate wealthy individuals and new institutions entering the blockchain market and taking significant positions, he added. All of this suggests that the correction is coming to an end. - The bottom line is that we are approaching a bottom in the short term for the current correction and we are just waiting for a reset of profit taking and a general shift of coins from weak to strong hands, he added. Tags Anthony Pompliano bitcoin btc cryptocurrencies btc rate
No comments:
Post a Comment