Does current Bitcoin [BTC] market condition resemble a ‘Coiled Spring’?

After a minor drawback, Bitcoin [BTC] has managed to bounce back above $61k as the weekend dawned. There are many opportunities for traders above this level. Prominent pseudonomous analyst ‘TXMC’ delved in detail with regards to the current status of the Bitcoin market. He observed that the overall outlook of the king coin mirrors that of a “coiled spring” on the basis of key indicators such as Transfer Volume, Realized HODL [RHODL], Liquid Supply, SOPR, etc.

The on-chain Analyst referred to the Glassmode charts attached below and stated that Bitcoin’s price below the $60k does not appeal to the holders. The reason behind the “uninterested” sentiment among the market particpants is the fact that its price below the level in question provides less scope for selling and profit-taking are minimal.

Apart from that, TXMC also points out the “old coin volume” is still low on historical basis despite rising. Further, he observed that holders continued accumulating since May’s bull run and the trend is still in progress.

Bitcoin [BTC] on-chain summary

Let us look into the above mentioned metrics closely.

The Transfer Volume, as indicated from the above chart surged by 3% of realized cap, which typically leans towards a bullish price action. Interestingly, the appreciating metrics has mostly remained unfazed since the month of September despite major volatility. TXMC claims that the utility exceeding network value is a healthy sign, and that the latest uptick might further push the demand in upward trajectory.

With respect to Realized HODL, the ratio between the newer coins to older ones depict that the current Bitcoin scenario is still halfway through a bull market that started two years back. In his tweet, the analyst drew parallel to the previous event of 2013 double bull run and the ongoing outlook and observed that not just the price ATH mirroring but also the formation of macro tops.

On the other hand, the Liquid Supply which determines the amount of Bitcoin owned by individuals, has been steadily shrinking since the beginning of 2020 after years of growth. HODLers are increasingly taking away supply from this group of market investors. This is quite different from the current one, as the analyst noted that previous bull runs has never witnessed such decline in the liquid supply.

Finally, the Spent Output Profit Ratio [SOPR] indicates the profitability ratio of coins spent is laying low considering the current market conditions and the “proximity” to the new price high that was established last week. As seen from the above chart, the SOPR indicator is depicting a relative baseline activity, compared to the spiking profit values one would anticipate in a distribution event. All these factors point out to patient HODLers who have not yet stopped stacking.