Main takeout:
BITCOIN recorded a new record of $ 111,970 on May 22, but analysts returned to $ 110,700, referring to a mixed signal of market overheating.
Funding rate and other indicators suggest “healthy upward stages”.
The price of Bitcoin’s (BTC) recorded a new all -time high of $ 111,970 on May 22. However, the price of the BTC was repaid immediately after trading at $ 110,700 at the time of writing.
Despite the correction, there is a mixed signal of whether the price rally is overheated or whether it is a healthy fullback.
Bitcoin “It’s not overheated yet” -The analystist
Bitcoin has pointed out the foundation, even though it has reached a new all -time high this week, there is no sign of overheating and suggested that Bitcoin can be higher.
Cryptoquant analyst Crypto Dan said in a Quicktake memo on May 22, Cryptoquant analyst Crypto Dan said, “Overheating indicators such as financing rate and short -term capital are maintained lower than the previous highs and the benefits of short -term investors are limited.
Crypto dan shows an increase in betcoin’s financing rate, which is an indicator of market overheating. But this bet says, “It remains much smaller than the previous peak,” he said.
If the bitcoin financing rate increases, you may sometimes worry about increasing the risk of bitcoin volatility and liquidation among market participants.
Nevertheless, the financing rate is moderately positive, and the merchant is optimistic about the price of Bitcoin, and the buyer is signing a signal that he is trying to pay the seller to take his position.
Meanwhile, the SOP (Sokt Prut Beafor) indicator using short -term holders (STH) has not gained profits during the recent increase despite the recent increase in STHS.
This indicator is currently estimated to be 1.02%, and STHS suggests that some profits are realized at a much lower ratio.
“In March 2024, there were significant profits and long -term corrections, but profit generations are much lower than that of November 2024,” he added.
Cryptoquant’s encryption DAN expects Bitcoin to continue to increase.
“Overall, the bitcoin market is still in a healthy upward stage.”
Meanwhile, Bitcoin’s MVRV Z-Score value, which compares the market value of BTC with realization value and adjusts volatility, has been remarkable over the last month.
Historically, all the previous Bitcoin Bull Runs ended with a metric entering the Red Zone to announce that Bitcoin was quite excessive in the MVRV Z-Score.
In 2.8, the MVRV Z-score is still larger than the Red Zone, which suggests that the market is not yet.
Bitcoin’s RSI enters “fatigue”
Bitcoin’s relative intensity index or RSI displays over hypernodermity in two of the five periods. Bitcoin’s RSI is now 70 years old and 75 on the daily chart for 12 hours. Other intervals can be seen almost the RSI value every week and 4 hours.
The data of the TradingView appears in 75, 71, 68 and 66, respectively, the RSI of the BTC every day, 12 hours, day and 4 hours, respectively. Meanwhile, the encryption horror and greed index are 78, indicating “extreme greed” conditions.
If investors receive too “greed,” the market has often been on modification. The index was at the same level in the height of the Trump -led pump in December 2024, just before the BTC fell to $ 74,000 in March just before it fell to about $ 108,000.
relevant: $ 111K bitcoin buyer advantage
It should be noted that these metrics pay attention to the risk of market participants. The encryption price is highly volatile, and BTC can continue to rally by increasing the demand for SPOT ETF and relieving the tension of trade war.
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.