The share of the first cryptocurrency proposal in profit exceeded 90%, which indicates an euphoria among investors, specialists from the analytical company Cryptoquant said.
According to experts, this significance is considered critical for assessing the stages of the market. Its excess of 90% often coincides with the periods of euphoria among investors, and the fall below 70% indicates the upcoming correction of the course.
The long -term average value of this indicator is about 75%. A large proportion of coins in profits is not a negative signal, as it feeds Bitcoin rally, analysts noted.
As a rule, the bottom of the market is formed when the share of profitable BTC drops below 50%. In order for this value to form, significant sales are needed by holders that fix profit or reduce risks. Such periods are often accompanied by increased volatility and panic in the market, experts explained.
They emphasized that observation of this indicator allows you to predict the short -term and medium -term fluctuations in the course. For example, a sharp increase in the share of coins in profit can serve as a signal to the beginning of the phases of consolidation or correction, even if the general trend remains bull.
Earlier, experts of the 10X Research analytical company said that the first cryptocurrency, most likely, would not be able to reach $ 200,000 by the end of the year due to the lack of strong support factors.
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Source: Cryptocurrency
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