QuickTake post<\/a>, popular analyst Burak Kesmeci shares insight on a potential bullish reversal in the Bitcoin market following recent changes in the Growth Rate Difference \u2013 an on-chain metric that measures variation between the asset\u2019s market cap growth rate and realized cap growth rate.\u00a0<\/p>\nFor context, the market cap reflects the total market value of an asset, determined by price and circulating supply. Therefore, it\u2019s often a speculative indicator. Conversely, the realized cap measures the actual capital inflows to an asset. It\u2019s a slow-moving, structural metric, and it\u2019s best for ascertaining capital commitment and the underlying market strength.<\/p>\n
When the Bitcoin Growth Rate Difference is positive, it indicates a bull market, as speculative demand exceeds actual capital inflows. On the other hand, a negative value suggests that price growth is slower than real money inflows, which are characteristic of a bearish or consolidatory market.<\/p>\n
\u00a0<\/p>\n
According to Kesmeci, the Bitcoin Growth Rate Difference has been negative since October 30, suggesting investors have been in a bear market over the last three months. During this time, prices have famously crashed by over 17%.\u00a0<\/p>\n
However, the Growth Rate Difference has also increased from -0.0013 on November 22nd to -0.0009 on January 24, suggesting a budding resurgence in speculation and price growth. Moreover, this development also indicates that bearish fatigue is setting in, paving the way for a bullish market rebound. Nevertheless, a clean break above the 0 midline to confirm entry into bull territory and on-chain support for upside momentum.\n<\/p>\n
Bitcoin Price Overview<\/h2>\n
At press time, Bitcoin is valued at $89,223, reflecting a minor loss of 0.25% in the last day. Meanwhile, the daily trading volume is down by 58.72,% indicating that most market participants are less willing to engage the market at the moment, thus explaining the sluggish price action.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"
In the past three days, the price of Bitcoin has moved between $88,000 to $90,000, indicating a rather stable market with little volatility. This ongoing price consolidation comes after the leading cryptocurrency suffered a significant setback in its goal to reclaim its psychological six-figure valuation. During the week, Bitcoin prices fell from around $96,000 to […]<\/p>\n","protected":false},"author":0,"featured_media":129755,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-129754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/129754"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129754"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/129754\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/129755"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}