Although the cryptocurrency market is in a downtrend and many coins have dropped 10-20%, Glassnode analysts suggest that cryptocurrencies still have the potential to continue to grow.
1. Returning Positive Funding
During the fall in the price of bitcoin futures fundraisingbecame negative for a short time, but quickly returned to the positive zone. Positive funding means that most market participants believe in continued growth.
However, funding is still not as high as it was in April or May. This means that traders are now using less leveraged funds than at that time. Consequently, the market is less volatile.
2. Old coins are not for sale
One of the main signals that traders should look at during a sell-off is the age of the coins that are being sold in the market. When whales decide to take profits, they sell old coins.
During the last sale, coins that did not move for a long time remained at their addresses and were not transferred to exchanges. This means that long-term holders are reluctant to sell at current prices.
3. Bitcoins on accounts of long-term holders
In addition to the previous signal, the amount of bitcoins held by long-term holders has increased since September 2020. Now holders hold 79.5% of the total BTC supply.
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According to the materials u.today