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Bitcoin holders waiting for a range exit should note down these points

Bitcoin holders waiting for a range exit should note down these points

Bitcoin holders waiting for a range exit should note down these points

Bitcoin continues to extend its stay in the $19,000 area, and it’s clear from the online chatter that investors are growing impatient. Many wonders when Bitcoin will break out of the current range and if it will be exciting or chaotic.

The world is waiting to see where the winds of volatility will take Bitcoin. Meanwhile, Messari’s team of analysts reported some interesting market observations. For example, Bitcoin could lose its correlation with the S&P500.

The latter continued to fall, while bitcoin price action has been sideways since the last week of September. Messari’s analysis also looked at Bitcoin’s volatility, which was unusually low. The cryptocurrency is known to be quite volatile, so its recent performance is unusual. The low volatility could indicate that the bears are running out of steam. These observations underscore a “calm before the storm” situation.

Why is declining correlation a win for Bitcoin investors?

Bitcoin and the rest of the risky assets, particularly the stock market, have moved in tandem for most of 2022. This means that shocks in traditional markets have affected BTC price action so far. The current economic environment seems unforgiving, especially for conventional needs. The next few months could be bumpy for the S&P500, but decreasing correlation means Bitcoin may not be as severely affected. Interestingly, Bitcoin’s outlook has improved over the past few days.

Demand in the futures and options market has increased recently. Investors should note that future market demand could be directional despite these observations. Derivatives market open interest has declined slightly over the past 24 hours. Exchange deposit transactions have increased over the past few days, while exchange withdrawal addresses have decreased somewhat over the same period.

The observation above suggests that more BTC holders are moving their BTC to exchanges, often a sign of incoming selling pressure. However, this does not necessarily translate into sales. Investors could move their coins to businesses to prepare for a potential drop that may not materialize. Whale activity is one of the best indicators to anticipate the next market move. Bitcoin addresses with more than 1,000 BTC have grown by at least 15 in the last five days.

Conclusion

Current market conditions are confusing for many investors, particularly unfavorable economic conditions. However, investors should note a less traditional market correlation and that the bitcoin whales have been buying. Improved futures and options market demand also underscores a favorable near-term outlook.

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