BTC - Some relief after Biden executive order leaked
Assets covered: Bitcoin (BTC)
Metrics used: Price, MVRV 7D, Supply on Exchanges
After a decent rally at the start of March, things started to fade as a full retrace was underway and lasted pretty much until yesterday. Most folks were pretty bearish about how things were going to go especially with the uncertainty lingering (Russia/Ukraine war, Biden executive order, FOMC).
Then came the surprise leaked Biden's executive order (EO) statement by Janet Yellen, which helped to clear out late shorters, pushing price higher and locking in a higher low for now.
Just right before the leaked EO, we can see via funding rate that majority of folks on major exchanges (Binance and FTX) were heavily short. Then they got liquidated and folks have switched Long.
No surprises here as most liquidations happened to shorters as the price rallied and had a mini short squeeze along the way.
While this price action is a much needed relief for BTC, $44,000s remain a key resistance at the moment, until BTC convincingly breaks and stays above it, downside risk still lingers given the other uncertainties around.
Supply on Exchanges
BTC's Supply on Exchanges continue to dip further for the past few months, which may suggest that folks are accumulating still. Things accelerated since the major dump in late Jan 2022.
BTC's MVRV 7D which measures the short-term profit/loss of holders, shows that we have bounced off the opportunity zone and making our way towards the Dangerzone.
There's just a little bit of room left for BTC before risk is significantly increased as short-term holders who are well in profit....take some off the table (looking at how things performed historically).
Thanks for reading!
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