Bitcoin Needs More Spot Buying to Resume Uptrend, Analyst Says

BitcoinWorld

Bitcoin Needs More Spot Buying to Resume Uptrend, Analyst Says

Bitcoin’s recent price action remains trapped in a sideways range, with no clear directional momentum, according to a new analysis from CryptoQuant contributor GugaOnChain. At a current price of approximately $78,419, the cryptocurrency has failed to establish a definitive uptrend or downtrend, leaving traders and investors uncertain about the next major move.

Key On-Chain Metrics Point to Neutral Market

GugaOnChain’s analysis highlights the Delta-Thermo Market Multiple (DTMM), a metric that compares realized and market capitalization to gauge market phases. The DTMM currently stands at 2.03, above the 1.5 threshold that indicates accumulation but below the 2.5 level that marks an expansion phase. This places Bitcoin in a neutral zone, suggesting that the market is neither heavily accumulating nor expanding aggressively.

Supporting this view, the short-term holder realized price is $69,371, which sits below the current market price. This indicates that recent buyers are, on average, in profit. Additionally, the short-term holder MVRV (Market Value to Realized Value) ratio is 1.13, implying that the market’s aggregate unrealized profit is modest and not showing signs of overheating. Funding rates, which reflect the cost of holding perpetual futures positions, are neutral at 0.0056, indicating balanced sentiment among derivatives traders.