Bitcoin rally stalls at $39.2K but BTC price metric suggests local bottom could be here

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Bitcoin (BTC) last tested the rise on Wall Street on February 23 as the fallout from Russia continues to unfold.

Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
Redemption of cryptocurrencies for shares
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD fell to $ 38,000 on February 23, after reaching $ 39,200 previously.

The pressure from the conflict between Russia and Ukraine has been a constant threat to equities as Bitcoin and altcoins are closely related.

The S&P 500 is down 0.25% in the first hour, while Russia’s Moscow Stock Exchange has consolidated large losses since February 23, throwing a further 7.3% at the time of writing.

The Russian ruble continued its gradual decline, breaking above 80 against the dollar after the news that Britain would ban Russian companies from settling in dollars or pounds sterling.

With such uncertainty, market participants looking for shorter time frames constantly had to reconsider their approach.

“I’m bullish on Bitcoin over the next few months,” William Clementi, chief analyst at Blockware, tweeted the same day about the long-term macro outlook.

“Strong online holding behavior combined with a large amount of relatively dry powder found on stock exchanges, stacked order books on the demand side and an extended spot premium regime for customers. March is coming next week and the maximum tightening is likely to be included in the price.”
Meanwhile, regarding Bitcoin’s continued pressure for global equities, Kee Yang Ju, CEO of the chain analysis platform CryptoQuant, claimed that it is not just bad news for those hoping Bitcoin divides into an asymmetric hedge against global uncertainty.

He concluded: “Good news: BTC is accepted by traditional institutions. It changes ownership of new players trading stocks. Bad news: BTC is not a safe resource. At the moment.”

The Delta screen indicates a potential price change
However, looking at the calculations on the network, Bitcoin looks more promising, Clemente suggested.

Related topics: ‘You should buy some bitcoin’ – bitcoin figures challenge Canadian authorities as ETF assets break record

On 23 February, the focus was on the Supply Delta metric, which reflects the share of BTC supply held by short-term and long-term owners, respectively.

The founder, Capriole founder Charles Edwards, notes that although “not perfect”, Supply Delta has managed to at least call house prices the highest. This week, he pushed the bottom for the long-term ownership that traditionally appears around a price bottom.

Long-term owners are defined as portfolios that have not been traded in the last 155 days, while short-term owners have sold the opposite during this period.

Price heights seem to follow short-term offer heights directly.

“From the supply side, this indicates that Bitcoin is in a large upside zone,” Edwards commented.

Source: CoinTelegraph

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