The cryptocurrency market has seen a rebound after new sanctions imposed on Russia turned out to be less severe than feared. Also rumors regarding the commencement of the negotiation process between Russia and Ukraine are also supporting the market sentiment. On-chain metrics suggest that the overall health of the BTC market is recovering quickly.
- The uptick in on-chain volume suggests that the relief rally is likely to continue.
Massive spikes in on-chain volume may indicate that accumulating process started. Source: Santiment
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Create account Try a demo Download mobile app Download mobile app- Estimated leverage ratio of Bitcoin price fell from record high of 0.218 to 0.192 which indicates that price may continue to move higher at least in the short-term perspective.
Recent 12% slump indicates that the market is less coiled after the flash crash and that bulls can now take over. Source: CryptoQuant
- The 30-day Market Value to Realized Value (MVRV) model which shows the average profit/loss of investors that purchased BTC over the past month has risen from -6.8% to -2.8% over the past three days, which is another bullish sign.
The 30-day MVRV is approaching zero line which may point out that many traders could have bought the dip and profited from it. Source: Santiment
Also digital asset investment products recorded inflows totaling US$109m last week despite recent price weakness and negative impact from the Russian aggression on Ukraine.
- The latest data marks the 5th week of inflows. Bitcoin saw the largest inflows totaling US$89m last week, the highest since December 2021.Source: CoinShares
Bitcoin price managed to break above resistance at $38,000 and is currently approaching major resistance at $40,000. Source: xStation5
Nevertheless one needs to remember that the situation in Ukraine is still tense. From one side Russian troops reached Ukraine's Capital Kyiv, however Russian local media is bringing up hopes for negotiations and talks between Russia and Ukraine. RIA Novosti is reporting that the Russian delegation could consist of defense and foreign ministry officials. Also NATO will hold a virtual meeting today in the Ukraine and any statements coming from this meeting may significantly impact market sentiment.
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