Bitcoin It saw record high demand. According to CryptoQuant’s Julio Moreno, there was a net inflow of 54,600 BTC on March 1 into Bitcoin hoarding addresses, which are addresses that only receive Bitcoin and do not spend any money. Thanks to this amount, the record for the highest entry in a single day was broken.
However, according to the analyst, the rapid increase in prices has caused some indicators to point to an overheating phase. The Bitcoin bull-bear market cycle indicator pointed to an overheated bull phase when prices reached $60,000. This phase, often referred to as the ‘red area’, is typically associated with a potential market decline, according to the analyst.
In addition, Bitcoin miners are currently grossly overpaid, indicating overheating conditions. According to the analyst, overpaying miners often leads to increased selling pressure in the market, which could potentially lead to a price correction.
Additionally, traders’ unrealized profit margins have risen to extremely high levels and are currently around 45%. According to the analyst, high levels of unrealized profits mean increased risks of selling, as traders may decide to cash out their profits, potentially leading to a sell-off in the market.
As a result, although demand for Bitcoin is at a record high, some indicators suggest the market may be overheating.
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/analiste-gore-bitcoinde-boga-asiri-isindi-anlami-ne/
