Analysis Company Announced That It Expects a Rise in Bitcoin and Listed the Reasons!

Krypto para analysis firm CryptoQuant, Bitcoin He claimed that there were important signs that the market was preparing for a new uptrend.

According to their latest analysis, the Exchange Flow Coefficient, a key indicator that tracks the ratio of short-term (30-day) BTC inflows and outflows to long-term (365-day) inflows and outflows on exchanges, is approaching its lowest point this year.

The decline in the Exchange Flow Coefficient indicates that short-term Bitcoin flows on exchanges are significantly lower than long-term ones. This decline is linked to lower volatility in stock market activity, a pattern that analysts say is often associated with investors accumulating assets.

CryptoQuant explained two key factors contributing to this trend:

• Long-Term BTC Holders Protect Their Positions: Experienced Bitcoin holders, often referred to as “HODLers,” continue to hold their assets rather than actively trading. According to analysts, this behavior is typical in the early stages of a bull market, as these wallets anticipate future price increases and prefer not to sell during periods of market uncertainty.
• Market Stability After Correction: Following significant price declines or corrections, markets often experience a recovery period and trading activity declines as investors wait for prices to stabilize before resuming active trading. The current low Stock Exchange Flow Coefficient indicates that the market is at such a stage.

Historically, low values ​​of the Stock Exchange Flow Quotient precede major price rallies, as seen before the 2023 Bitcoin bull run, according to CryptoQuant. The current levels of this indicator may indicate that the market may be preparing for another uptrend, potentially signaling a new bullish phase in the cryptocurrency market.

*This is not investment advice.