February Bitcoin (BTC) Monitoring – On-Chain Analysis – Cryptonium


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February Bitcoin (BTC) Monitoring – On-Chain Analysis

Bitcoin started 2023 with confidence, posting its most brutal rally in two years and a 43% gain. However, BTC’s direction has stalled since early February.

Luck seems to be moving away from the bulls, and after testing resistance at $24, 000, BTC’s value has returned to a seven-day low of $22, 700. BeInCrypto’s editors sought to find out how long the correction would last and how it would be received in the bazaar. On-chain indicators such as network strength, currency movement on exchanges, and minor reserves were used in the analysis.

BTC Network Activity: Major Traders Losing Interest

According to Sentiment, the number of bitcoin transactions by whales has declined since February 2. This coincided with a downward revision from $23, 800BTC – February 2023 whale transactions. Key: Sentiment

According to statistics, the number of large transactions over $100, 000 on the BTC network reached a 2023 high of 12, 069 on January 4. The month through this intraday number was below 8, 000.

Much of this desire was due to traders’ renewed focus on several overhyped altcoins. For example, blockchain token SingularityNET (AGIX) made our list of top favorites for the year.
SingularityNET is a blockchain platform that allows for the monetization and distribution of artificial intelligence services in international markets.

According to Santiment, these addresses have recently been aggressive in removing their coins. This could indicate that bitcoin will remain below $23, 000 next week.

What is the break-even point?

According to IntoTheBlock’s in-the-money/out-of-the-money statistics, the closest help for BTC is in the $22, 500 area, which is significantly weaker than the $23, 500 resistance area. Therefore, a drop to $22, 500 seems more likely than a rise at this point.
The In/ Out of the Money Around Price (IOMAP) metric tracks addresses approaching break-even levels. Historically, holders have been positioned to recognize when the direction of BTC will reach the average purchase price.

Given the critical supply zone in the $23, 300 regions, one can imagine that a Bitcoin breakout below $22, 800 could be accompanied by a larger drawdown as holders want to limit their losses.
IOMAP, February 2023. Key: loading all totals by IntoTheBlockFailure.

Stock Market Trends.

The coin’s net movement on the exchanges is still showing slight bearish signs, supporting the February Bitcoin watch and suggesting that the direction of BTC may be below $22, 000.

According to IntoTheBlock, virtual currency holdings have increased by approximately 4, 080 BTC over the past seven days. On a monthly basis, this represents a 60% increase.
If the inflow of coins to the exchanges increases and withdrawals are high, it means that owners are planning to sell their assets in the foreseeable future.

Net BTC jet on the exchange in February 2023. Key: IntoTheBlock

Miners: an unsettling bright spot

Meanwhile, more reliable future signals are coming from the miners: with the value of BTC now exceeding the average cost of mining a single block, almost all major mining companies are back in the sweet spot.
Average cost of BTC mining. Key: Cambridge Institute

Historically, miners tend to accumulate fees on mined blocks when the direction of the coin exceeds operating losses. If this continues, a hoarding trend could help bitcoin.

But it may not be enough for a full price rise . A further boost to the rally could come from the January freeze report on the U.S. consumer price index, due on February 14.

Recall that bitcoin rose rapidly on January 12 after a similar inflation report for December was released. At that time, it became known that inflation had declined month after month. If that happened again, the market would begin to speculate about a possible rate cut by the Fed, and that would play into the hands of bitcoin. Cannot read all totals.

Cryptonium Editors