On-chain data shows that central entities based on the United States are increasing their share of Bitcoin recently. This is the meaning of assets.
Bitcoin We form a golden cross to rest reserve ratio
In an encrypted QuickTake post, an analyst talked about the latest trends in Bitcoin’s ratio to rest reserves. As the name implies, this indicator tells us the ratio between the number of assets held by a centralized platform in the United States and the number of assets held by offshore stocks.
This indicator not only takes into account cryptocurrency exchange reserves, but also coins like exchange-traded funds (ETFs). As its value rises, this means that the coin is being transferred from other platforms to US-based platforms. On the other hand, its decline suggests that foreign platforms are dominating.
Now, here is a graph of Bitcoin’s remaining reserve ratio shared with quantum, which shows the trends of the exponential moving average (EMA) over the past year and a half:
Looks like the two lines have gone through a crossover in recent weeks | Source: CryptoQuant
As shown in the chart above, Bitcoin’s 20-day EMA to the remaining reserve ratio has surged sharply over the past month, meaning that U.S. entities have gained more share. Earlier, these platforms have been losing dominance, so much so that the 20-day EMA has dropped below 50 days, but now, this uptrend has taken a reverse crossover.
Judging from the chart, this type of crossover can also be seen last year. Apparently, previous instances led to a rally in Bitcoin, raising its price to new highs. So far, the latest one has the same impact on cryptocurrencies as it has entered an all-time high exploration mode. Also, if the last golden crossover is about to pass, this fresh run may also last for a while.
It is important to note, however, that the death cross occurs, which happens when the U.S. platform begins to lose its dominance at a rate of 20 days under 50 days. Both of the previous patterns have happened to mean the end of Bitcoin’s bullish momentum. As the analyst said: “As the bullish wave continues, until the death cross indicates the end.”
In some other news, as link analytics firm Santiment pointed out in X’s post, “Dormant Coins” have been in circulation lately.
The trend in the Mean Dollar Invested Age of BTC | Source: Santiment on X
As can be seen from the chart, firm hands will only move the elderly coins in a large bull market opportunity. These smart phones recently demonstrated this trend for the third time in this cycle. Now, it remains to be seen whether this rally is as big as the other two instances.
BTC price
Bitcoin’s price has recovered to $109,300 and Bitcoin faces a small pullback.
The price of the coin seems to have been moving up during the past few days | Source: BTCUSDT on TradingView
Featured images from dall-e, charts for cryptoquant.com, santiment.net, tradingview.com
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