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The month of March has traditionally been a down month for Bitcoin, but over the last two weeks, the crypto-asset has risen by 22.49 percent. Nonetheless, although BTC did trade above $60,000 during the time span in question, the pattern remains unclear, particularly given that the cryptocurrency was trading at $55,180 at the time of publication – an indication of an uncertain bullish leg.
Indeed, business measures are currently indicating various paths and possibilities, as shown by the data below.
Strong support at $55,000?
According to Arcane Research, there is a substantial accumulation of Bitcoin as the UTXO Realized Price Distribution (URPD) highlighted the amount of current BTC last jumped between $54,000 and $58,000.
Until March 15th, 865,000 BTC were traded in the aforementioned price band, suggesting a steady trading range about this stage. This price differential can be seen as imminent help for Bitcoin to recover from.
It should be noted, however, that other on-chain metrics seemed to be displaying something else for Bitcoin.
According to Ki-Young Ju, CryptoQuant’s CEO, Bitcoin may possibly take a breather before going on another bullish rally because of high selling pressure on spot exchanges. According to him, the market cap of Bitcoin is overextended and a rally is difficult to facilitate right now based on the Stablecoin Supply Ratio.
Furthermore, USD spot inflows have been restricted, while the GBTC premium has stayed negative. The Coinbase premium has also remained neutral, reflecting the decline in purchasing pressure on the exchange.
Despite the fact that both of these metrics point to a downturn in investor confidence, the Options market remains laced with bullish optimism.
Bitcoin Call Options regain momentum
After BTC reached $60,000 on March 13, the market’s hopes of a stronger turnaround resurfaced, as Ask volumes outnumbered Bid volumes. In reality, according to a recent article,
“From the perspective of option skewness indicators, the market’s profit-making effect has stimulated investors’ enthusiasm for participation, and there is a certain premium for Bitcoin call options.”
However, since the Options market’s confidence was based on spot activity over the previous week, a sluggish spot market will invariably result in a reduction in market excitement for BTC Options as well.
Currently, no assurance of the upcoming bullish leg has been obtained that will satisfy investors. Although certain altcoins have risen in value, the overall theme remains neutral.