[Analysis] "Bitcoin, has it reached a peak... Exchange usage indicators weak"

Uk Jin

Summary

"Bitcoin"'s Fund Flow Ratio indicator is approaching historical low levels, suggesting the price may have reached a cycle peak.
It stated that when the indicator bottoms out, the phenomenon of liquidity stagnating and investors' exchange usage becoming minimal suggests the market has reached a state of saturation.
However, it added that in the medium term there is also a possibility of retesting or breaking through the previous high of $126,000.

Bitcoin (BTC) may have reached a cycle peak.

On the 28th (Korean time), CryptoQuant contributor PelinayPA said in a report, "the Fund Flow Raito indicator is approaching historical low levels."

The Fund Flow Ratio indicator is the metric that divides the trading volume used for exchange deposits and withdrawals by the total network trading volume. A higher value indicates that investors' exchange usage is active; conversely, a lower value indicates that investors' exchange usage is minimal.

The contributor said, "When Binance's Fund Flow Ratio indicator bottoms out, Bitcoin's price often records a peak," and "When actual capital activity decreases and inflows to exchanges weaken, it generally means the market has reached a state of saturation." He added, "This phenomenon has been observed in past cycles," and "the higher the price, the more liquidity stagnates, speculative interest decreases, and it suggests the uptrend is reaching its final stage."

The contributor also explained, "Given the current structure, it appears whale investors are maintaining positions without adding selling pressure," and "this may indicate the early stage of potential peak formation." However, he added, "In the medium term, there is also a possibility of retesting or breaking through the previous high of $126,000."

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