Despite Bitcoin’s price correction 287 days after its most recent halving, on-chain metrics suggest fundamentals remain strong.
Analyst The lord of the entrance has shared information on key indicators showing an increase in continued demand and strong holder behavior. This strength comes despite recent short-term volatility.
Bitcoin exchange reserves hit all-time low
One of the most important fundamentals is the fall of Bitcoin (btc) reserves on cryptocurrency exchanges at an all-time low.
This trend indicates that investors are increasingly choosing to hold their BTC rather than holding it on exchanges for possible sale. Falling foreign exchange reserves are often interpreted as a bullish signal. This is also a potential sign of a reduction in immediate selling pressure.
The analyst highlighted that active addresses and transaction volume on the Bitcoin network remain high. This denotes sustained activity in the chain despite the price correction.
TheLordofEntry also highlighted important changes in the derivatives market. According to data shared by the analyst, positions in the derivatives market have decreased substantially, indicating a reduction in leverage among traders.
Long-term holders continue to acquire Bitcoin
Investor behavior signals that long-term holders continue to accumulate BTC. On the contrary, short-term holders are showing selling signs.
The analyst suggests that long-term trends could remain positive, based on the accumulation patterns of experienced investors and the decline in foreign exchange reserves.
Bitcoin has struggled to maintain its positive trajectory since reaching a new all-time high of $73,700 in March. Even though BTC managed to rise back to the $65,000 level, several market conditions dragged the price below the $60,000 level.
BTC is now hovering around the $62,600 level at the time of publishing as the global crypto market capitalization is down more than 1.6% in the last 24 hours.
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