6 Indicators for Clues on Market Trend

Editor's Note: This article comes fromNakamoto Shallot (ID: xcongapp)Editor's Note: This article comes from

Nakamoto Shallot (ID: xcongapp)

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• 1. The profit and loss data of currency holding addresses show that:

• BTC Support at $6600, Resistance at $7700

There are quite a few holding addresses whose purchase cost is between $901 and $4179, followed by between $4179 and $6631.

About 2 million holding addresses cost between $6,600 and $7,900 to purchase. Specifically, 1.03 million addresses obtained bitcoin costs between $6,631 and $7,354; 1.35 million addresses obtained bitcoin costs between $7,354 and $7,968.

This means that an address holding Bitcoin at a cost of $6,600 to $7,900 may have buying or selling activity in this price range. That said, $6,600 appears to be an important support level. Once the price fell to $6,600, some of these addresses were "no longer profitable," meaning they would lose money if they chose to sell. If the sell-off continues, these holding addresses could trigger panic selling.

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As shown in the figure below, in the past week, the total amount of large Bitcoin transactions (a single transaction greater than $100,000) has returned to the level of last week. This points to a rise in both investor confidence and trading activity.

3. Western investors seem to be more active in trading activities

As shown in the figure below, in the past two weeks, the proportion of crypto trading activities in Western countries was 53.02%, slightly higher than that in Eastern countries.

4. The number of active Bitcoin addresses remains stable

5. The phenomenon of capital outflow is serious

Exchange net flow analysis shows that funds have been flowing out of central and leading cryptocurrency exchanges over the past few days. Notably, the trend appears to be headed for the worst of the year.

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6. Stablecoin trading activity increases

During a downturn, investors often swap crypto assets for stablecoins. Tether's trading activity appears to reflect this.

Of course, the above data is not to predict the trend of the encryption market, but to provide investors with some clues to the direction of the market.

As for how the bitcoin market will go in the future, analysts are mostly pessimistic.

Shallot analysts pointed out that in the early trading hours, BTC achieved a downward break from the intraday low of last Friday, which further "exploded" the short-term market bearish sentiment. With the steady downward pressure of the 4-hour 50-period moving average and the effective breakdown of the key support of 7300, the downward trend has become quite clear.

The Forbes article analyzed that the price of BTC, LTC and ETH fell below the previous support level or became a market warning signal.