Altcoins may be dealing with intense market pressure but Bitcoin isn’t, despite the slight plunge in Bitcoin’s price this week. To take the decline in price as a sign that the bull run is over may not be as beneficial as it may currently look, according to new on-chain data that says otherwise.
CryptoQuant, a leading on-chain data platform has published a new set of data in which a “buy-the-dip” signal indicates that Bitcoin is in a strong buy zone.
Whales have stomped the market, sending the exchange inflow to astronomical levels. Usually, this could incite a bear market, but in the long-term, the charts may play in favor of those who don’t fret during this period.
The $BTC buy-the-dip indicator says we're still in a strong buy zone.
— Ki Young Ju 죟기ě (@ki_young_ju) November 10, 2020
View Charthttps://t.co/NEBSp0GFbs pic.twitter.com/38OcQtXjrU
Part of the data informs that “Ironically, in the long-term trend, the Exchange Inflow Mean could be a buying indicator.” Moreover, the CEO of the firm added that “After the price plunge, there have been subsequent exchange inflows by whales for two reasons.” He continued to say that “First, in the bull market: To sell it at the local high. They sell when the retail investors are active on exchanges. Second, in the bear market: To sell it if the unusual fear-sell happens.”
It will pay off to see the long-term market trend for two reasons; over 1.25 Bitcoin whales are active on the exchange, and the presence of whales under 1.25 Bitcoin is also proof that small retail investors are also active on the exchange.
Meanwhile, it is still perceived by traders that going “long,” on Bitcoin at this point is as much a gamble as selling, as there is no telling if the market will flip into a bull or a bear market; they are right. Even as the technical indicators point to a positive route, fundamental factors can still rewrite the next trend movement. A bigger risk is the fact that the close of the year is welcoming new network upgrades across other systems, and the effects of these integrations within the market may have a significant impact on Bitcoin’s trend pattern.
For investors that still prioritize market rewards and intend to keep losses at a minimum, this trader proposes a fitting option.
“If you’re enjoying those relief rallies (or massive breakouts) on altcoins,
I’d be happy to give you the advice to take profits.Â
You don’t have to go out in full, temporary profits can also be taken.
Something people often forget.”
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