All the lights are red for Bitcoin which seems on the verge of falling again. In addition to the movements of large whales, which often herald declines, crypto exchanges seem to lack enthusiasm on the part of buyers. Indicators like the Sharpe ratio do not bode well for a possible rise in the BTC pkkkkrix.
Abandoned by the big players: bitcoin in danger
Yesterday, May 13, the crypto community held its breath as Bitcoin showed signs of rising, reaching $63,417 around 7 p.m. (Paris). A fall towards $56,000 at the start of the month caused panic among traders.
A recent analysis of AMBCrypto reveals a worrying trend in the bitcoin market. According to CryptoQuant, the index was -0.050, indicating that many US bitcoin holders are selling rather than accumulating.
Signal Quant, portfolio profiling expert and author at CryptoQuant, commented on this trend, saying that the bitcoin price could undergo another correction before rebounding.
“ The current trend for Coinbase Premium is currently positive, close to zero. So if the historical pattern repeats itself, we might have a better chance of success if we wait a little longer and invest in the rebound after the trend turns negative. »
Currently, the price of BTC is $62,785, up 2.94% in the last 24 hours. However, this increase could be short-lived.
Bitcoin could therefore experience a further decline, as signals from the Coinbase Premium index suggest. This index measures buying pressure among US investors, a crucial factor given the large number of bitcoin holders in the country.
A high Premium value indicates increased buying pressure, while a low Coinbase Premium Index indicates increased sales.
Risk season has arrived
Sharpe ratio analysis offers a worrying insight into the future of bitcoin. Currently at -2.22, the ratio indicates too high a risk relative to the potential benefits.
For bitcoin to rebound, this ratio would need to reach the zero midpoint. However, the total bitcoin supply in profits is currently at 87.03%. For a significant rebound, this figure would need to drop to around 78.20%, the same level as in March, before the previous rebound.
A decrease in supply could propel BTC above $75,000. On the other hand, if the number of coins in circulation increases, bitcoin could fall further. Currently, the daily circulation is 17,600, indicating a decline in transactions.
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