Despite Bitcoin’s recent price correction, 287 days after its most recent halving event, key on-chain metrics indicate that its fundamentals are still solid. According to crypto analyst TheLordofEntry, several indicators point to continued demand and strong holder behavior, even amidst short-term market volatility.
Bitcoin Exchange Reserves Hit Record Low
One of the most telling signs of Bitcoin’s strength is the ongoing decline in Bitcoin reserves held on cryptocurrency exchanges, which have now dropped to an all-time low. This downward trend suggests that investors are increasingly opting to hold their BTC rather than keep it on exchanges for selling. Lower exchange reserves are often viewed as a bullish signal, indicating reduced selling pressure and increased confidence among long-term holders.
Additionally, the analyst pointed out that active addresses and transaction volumes on the Bitcoin network remain high, further highlighting sustained on-chain activity despite recent price corrections.
Decline in Derivatives Market Positions
Significant changes have also been observed in the derivatives market. As per data shared by TheLordofEntry, there has been a noticeable decrease in leveraged trading positions, indicating a shift towards more cautious and less speculative market behavior. This reduction in leverage could help stabilize the market in the long run.
Long-Term Holders Continue Accumulating BTC
Long-term holders are continuing to accumulate Bitcoin, while short-term holders appear to be selling off. The ongoing accumulation by seasoned investors, combined with the declining exchange reserves, suggests that long-term trends could remain positive for Bitcoin.
Bitcoin has struggled to maintain its momentum since reaching a new all-time high of $73,700 in March. Although it managed to bounce back to the $65,000 level, market conditions have since pushed the price below $60,000. At the time of writing, BTC is trading around $62,600, as the global crypto market cap has decreased by 1.6% in the last 24 hours.
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