Bitcoin On-Chain Metrics Indicate Potential Reasons for Rally Pause
Recent on-chain data indicates bearish developments in Bitcoin metrics, which may explain the pause in its latest rally.
Key Indicators Show Trends
- Exchange Reserve has declined, suggesting significant BTC withdrawals from centralized exchanges, indicating accumulation by holders.
- The decline in Exchange Reserve has stabilized, coinciding with a pause in Bitcoin's price surge.
- Outflows currently balance inflows; a reversal to net deposits may signal bearish conditions.
- Net Realized Profit and Loss (NRPL) showed a large negative spike of $2 billion but reversed to a positive territory, peaking at $3 billion during profit-taking.
- Spent Output Profit Ratio (SOPR) confirms profit-taking trends among investors.
- Whale-sized entities (holding over 1,000 BTC) have executed significant transactions, influencing market dynamics.
Current Price Status
As of now, Bitcoin is priced at approximately $95,000, reflecting a 10% increase over the past week.