Skip to content
- Bitcoin’s price rises 2.24% in 24 hours, but declines 2.57% over the past week, reflecting market volatility.
- IBCI enters the Distribution zone for the third time, signalling growth but not yet overbought or at a market peak.
- Market shows strong growth, but indicators point to potential short-term volatility; caution is advised.
As of press time, Bitcoin (BTC) is trading at $115,688, which is 2.24% higher compared to the previous day. The trading volume for the same day stands at $98.83 billion, reflecting a 33.03% increase. However, the price of Bitcoin has declined by 2.57% over the last week, indicating short-term market volatility.
IBCI Indicates Market Growth
CryptoQuant highlighted that the Index Cycle Indicators of Bitcoin (IBCI) were already in the Distribution region, the third time during this bull run. This area is normally related to market peaks. However, the IBCI was only hit by 80% compared to 100% at the past market peaks. This implies that the market is not yet overbought, yet still expanding.
The market is still experiencing a growth period. Nevertheless, it is not yet on the euphoria stage that usually signals the demise of a cycle. Major signals such as Puell Multiple and short-term SOPR (STH-SOPR) remain below their intermediate lines. This shows that highly speculative retail activity and profiteering are not yet predominant.
Source: X
Also Read: Ethereum Holdings of BitMine Exceed $2 Billion as Company Surpasses SharpLink in Crypto Assets
The Puell Multiple, an indicator to measure the profitability of miners, approaches the territory of the Discount. Although Bitcoin has experienced new unprecedented highs, this indicates that there is no overbought situation on the market. The IBCI has robust fundamentals, which means that Bitcoin can rise in price further without hitting a top.
The IBCI implies a potential upward direction as well as an increased probability of minor declines in the short term. The market is still not there yet in the euphoric part of the end of a cycle. Nevertheless, it is recommended to be careful since this is a sign of higher market volatility in the short term.
Bitcoin Faces Short-Term Volatility
CoinGlass data indicate an increased market activity. The total volume increased by 47.34% to 134.52 billion and the open interest increased by 4.93% to 87.24 billion. The OI-weighted funding rate of Bitcoin is 0.0151%. This demonstrates the ongoing trust in the market.
Source: CoinGlass
Although Bitcoin has shown great growth, it might be affected by short-term price volatility. The market continues to grow, and investors are advised to expect corrections. As Bitcoin keeps rising, it is essential to note the indicators to determine its future action.
The recent behaviour of Bitcoin indicates that the market is bullish but a cautious approach is needed since main indications prove that there is still room to progress and short-term risk.
Also Read: Ethena and Anchorage Launch First GENIUS-Compliant Stablecoin in the U.S.
