The recent pouring of Bitcoin into exchanges as indicated by data from Glassnode might have a grim underlining message for crypto enthusiasts. The one-day moving average of Bitcoin’s exchange net flow has climaxed at a hefty $9.75 million – the most in the past month. This is concurrent with the disappointing plunge of Bitcoin’s price under the $26,000 mark. The fact that a high positive figure indicates growing reserves on exchanges, usually a precursor to selling activity, could mean that long-term Bitcoin holders are eager to cash in on the current price despite it being below the 2021 all-time high.
Moreover, according to analyst Ki Young Ju of CryptoQuant, Bitcoin velocity recently hit a three-year low, suggesting that older Bitcoins are being spent, yet not many are optimistic about a strong rise at this point due to low turnover rates and a stale market psychology.
At present, Bitcoin loiters around $25,800, a collapse of over 60% from its pinnacle of $69,000 recorded in November 2021. Indeed, if the exchange influx continues to surge, it might bring upon more damage to Bitcoin’s diminishing value. To evade the risky prowls of Bitcoin, some traders may find salvation in altcoins demonstrating stronger technicals such as PARROT, ANUBIS, and SOJU – some of the biggest crypto gainers today on DEXTools.
PARROT has skyrocketed by 1,490.71% and while its 15-minute technical indicators suggest a bearish trend in the short term, the potential for a bullish reversal remains given the right conditions. ANUBIS, however, after its initial surge of nearly 1,300% and subsequent addition of 68.13%, seems to flirt with a potential bearish trend. Finally, SOJU, enjoying a surge of 1,674.24%, may be a hot pick for inevitable risks, provided it manages to break free from the current support zone and break though the resistance levels.
Regardless of today’s highlights on DEXTools, it would be wise for investors to diversify into promising new cryptocurrency ventures that are yet to make their debut public offerings. While this could present a certain level of risk, the potential multiplication of profits might be a temptation too significant to ignore if the project thrives post-launch. However, just as potential rewards might be enticing, the risk factor remains substantial if the venture goes southward post-launch.
Truly, the crypto playground is saturated with both unprecedented opportunities and unfamiliar dangers waiting to pounce. Crypto enthusiasts are urged to proceed with caution and vigilance.
Source: Cryptonews
