Happy New Year Everyone!
Bitcoin spot price action has provided precious little by way of interesting cues lately, staying in a well-defined range.
A tussle between bulls and bears has in fact been somewhat underwhelming in nature beyond rhetoric found on social media — volumes are thin, interest from retail low, and large players continue to maintain sell levels nearby.
That strength is captured in Bitcoin’s market cap dominance, which has now slipped under 40% for the first time since May, data from TradingView shows.
On-chain metrics predict “sustainable price trend”
For those looking for a silver lining to the uninspiring price action, on-chain metrics provide no shortage of relief.
The further away the market gets from last month’s snap correction, the more enticing Bitcoin looks as an investment punt based on historical trends.
To addon, the last time Bitcoin was at $47K, long-term holdings were 10% lower. To date there has been insignificant distribution despite the volatility. That’s bullish.
Bitcoin is back in extreme fear. Historically that means there is limited downside at 30 days.