Market Sentiment Cooling Down
According to recent data from on-chain analytics platform Glassnode, the 30-day moving average of Bitcoin's realized profit-to-market cap ratio has declined significantly. This drop indicates that profit-taking activities in the market are gradually slowing down.
Nevertheless, the metric remains above historical levels associated with panic selling, suggesting that widespread capitulation has not occurred yet. Overall, market sentiment is cooling but hasn't reached extreme panic levels.
On-chain Signals Reflect Market Dynamics
The realized profit-to-market cap ratio serves as a key indicator of market behavior. The current decline in this metric suggests that short-term traders are reducing their selling activity, indicating the market may be entering a consolidation phase.
- Decline signals reduced profit-taking pressure
- Avoiding panic zone shows market resilience
- On-chain behavior reflects cautious investor stance
These developments could indicate the market is seeking a new equilibrium, with potential for sideways movement in the near term.