Cryptocurrency analytics firm CryptoQuant is saying that Bitcoin (BTC) could be at an inflection point.
According to the analytics firm, Bitcoin could be near a level where a further fall in price is unlikely.
[adinserter block="1"]“The average duration of the Bitcoin drawdown might indicate that Bitcoin is close to where most of the drawdowns typically stop.”
CryptoQuant says that the recent dip in Bitcoin’s price from around $52,000 to around $46,000 shows that the flagship cryptocurrency is “right at the edge where most of the drawdowns typically stop.”
According to the crypto analytics firm, Bitcoin has spent 68% of the time ranging between 40% and 85% off its all-time high – the typical period spent by an asset in a global maxima drawdown. A global maxima drawdown is the highest level of loss incurred from the time the value of asset declines from the all-time high to a bottom before a new all-time high is reached.
Bitcoin’s all-time high, reached in November of 2021, is slightly above $69,000. Bitcoin is trading at $46,402 at time of writing.
CryptoQuant also says that the supply of stablecoins in cryptocurrency exchanges is rising again after a recent drop.
“Our stablecoin chart is indicating less stablecoins on exchanges since 25th December of 2021 to 29th December of 2021 indicating more stablecoin withdraws on exchanges.
Stablecoin supply keeps rising since 30th December of 2021 indicating more stablecoin demand.”
The crypto analytics firm further says that whale activity is indicating that the sell pressure is waning since the start of the year.
“Last but not least our 30-day average whales ratio on hourly basis showing a falling trend indicating the sell pressure is reducing since 2nd January of 2022.”
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