Bitcoin price is rocketing and Fear and Greed Index exceptionally get more optimistic at the value 54.
Is this actually an uptrend or are whales waiting to swallow inexperienced investors? DePocket identifies that funds are withdrawing more BTC out from their portfolios.
Let’s check the on-chain data with DePocket to know what is happening.
In the first picture, BTC Dominance value is at a very low level on the weekly chart, which means money flow in the market is mainly flown into altcoins. Recently, we see that the BTC price has just gained a considerable recovery, but looking at the BTC.D figure, we do not perceive any strong surge of its value. Based on that, DePocket suspects that whales are generating a situation to decoy retail traders to join the market and dump everything to scare them to sell at a loss.
In the second picture, the Fear and Greed Index observes a neutral value which shows that most investors are less painful and start perceiving more positively about an uptrend prospect. Move on to see DePocket’s full analysis.
In the third picture, the Bitcoin All Exchanges Netflow Index displays that more BTC are withdrawn from all exchanges, which is shown by the several red downward columns. This means that whales do not intend to sell their BTC and possibly are preparing for an upcoming uptrend. We advise you to regularly check this Index as it can help you have an overall view of how bullish whales are with Bitcoin so that you can make suitable amendments for investment plans.
In the fourth picture, you can see that the blue line standing for the value of BTC reserve on all exchanges Index has been going down and has not shown any behavior of whales to constantly deposit BTC into exchanges to sell. As a result, in the long-term period, we have enough evidence to align ourselves with the belief that BTC will continue to make its new ATH.
In the fifth picture, the DePocket team would like to show you the most negative signal that proves the recent BTC price escalation could be just an act to decoy new crypto investors to buy at this price level. Then, they will dump BTC again to make those individuals consequently sell all digital assets. The decline in the Fund Holdings Index shows that Whales are not interested in buying more BTC as they are withdrawing more BTC out from their portfolios. In the other words, there is no smart money flowing into the market to significantly confirm uptrend inception.
Do you think that an uptrend is taking place or not? What are your opinions about the market at present?
Which answers below match your perspective?
- Uptrend now
- Sideway for a while
- Will soon continue to dump more before the uptrend actually begins
- We are in the winter of the crypto market. (downtrend)
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