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BTC’s On-Chain Metrics Indicate Local Price Bottom Reached

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• CryptoQuant analyst Joao Wedson suggested that Bitcoin’s [BTC] price may have hit a local bottom at the $24,000 price mark.
• On-chain metrics, like Age Consumed and Network Profit/Loss ratio (NPL) indicate that BTC’s price could be bottoming at the $23,700 price point.
• Taker Buy Sell Ratio indicator can identify BTC’s price trend changes by crossing a value line of one which might signify local tops and bottoms.

CryptoQuant Analyst Suggests Local Bottom

CryptoQuant analyst Joao Wedson has suggested that Bitcoin’s [BTC] price, which saw a 6% decline in the last week, may have hit a local bottom at the $24,000 price mark. Wedson concluded after assessing the 350-day moving average and the 100-day exponential moving average that makes up BTC’s Taker Buy Sell Ratio indicator. According to Wedson, with the Taker Buy Sell Ratio indicator, analysts have found that the 350-day MA and 100-day EMA can identify BTC’s price trend changes. He noted further that the 100-day EMA crossing a value line of one could also signal local tops and bottoms, presenting buying or selling opportunities.

On-Chain Price Bottom Markers Say Otherwise

In terms of identifying local price bottoms for cryptocurrency assets, some on-chain metrics have been effective in that regard. One of the most effective indicators is Age Consumed, which monitors the behavior of previously inactive coins on the blockchain. A surge in Age Consumed indicates a significant number of inactive tokens have been transferred to new addresses, indicating a sudden and pronounced change in the behavior of long-term holders. Since long-term holders and experienced traders seldom make impulsive decisions, a renewed activity of dormant coins often corresponds with significant changes in market conditions.
A look at BTC’s age consumed revealed a spike in its Age Consumed metric on 22 February when BTC traded at $23700 USDT,. BTC’s price then spent three days rallying to trade at 24100 USDT ,at press time .The growth in BTC’s Price which followed this surge could be taken as an indication for Local bottoming near 23700 USDT .

Network Profit/Loss Metrics

Another indicator useful to note is Network Profit/Loss ratio (NPL). This metric calculates mean profit or loss of all coins transferred to new addresses on daily basis .This approach is used to identify instances of profit taking or holder accumulation when prices are low relative to their intrinsic value .

Conclusion

In conclusion , it appears from both analyses ,that bitcoin has indeed reached its local bottom near 24000USD ,however if one wishes to follow On chain metrics they should expect further rise above current levels if age consumed continues its recent trend .

Importance Of Metrics In Crypto Trading

Metrics like age consumed & NPL are important indicators for crypto trading as they provide insight into how long term holders view current market situation & their response towards it .Therefore any trader should consider these additional sources before making any investment decision regarding cryptos .

Crypto Scam Revenue Drops 46%, Investment Scams Generate Most Revenue

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•Chainalysis reported that cryptocurrency scams generated $5.9 billion in revenue in 2022, representing a 46% decrease from 2021.
•Investment scams were the most profitable type of scam, making up more than half of the total revenue at $3.4 billion. Romance scams had the highest average victim deposits at almost $16,000.
•The data showed that scam revenue was closely linked to Bitcoin’s price movements and that stablecoins were more commonly used for scams. In addition, U.S.-based victims made up a disproportionate share of NFT-related scam funds and centralized exchanges sent significant payments to scammers.

Crypto Scams: Revenue Drops by 46%

A February 16 report by Chainalysis revealed that crypto scam revenue decreased by 46% in 2022 compared to 2021, reaching $5.9 billion in total. Investment scams proved to be the most lucrative category for fraudsters, generating over half of the total revenue with $3.4 billion collected from victims throughout the year.

Romance Scams Have Highest Average Victim Deposits

Although investment scams generally generated the most overall income, romance scams had the greatest impact on a per-victim basis due to their higher average deposits amounting to nearly triple those seen in other categories of frauds studied by Chainalysis. The firm also noted that many romance scam cases go unreported because of their personal nature which could lead to higher overall figures than what is currently reported about this specific form of scamming activity.

Scam Revenue Closely Follows Bitcoin Price Movement

Data gathered by Chainalysis indicated that as Bitcoin’s price rose or fell during the course of last year so did illicit activities related to cryptocurrency since there seemed to be a three-week lag between changes in BTC pricing and corresponding adjustments in fraudulent revenues received by scammers around the globe during this period.. Stablecoin usage was also found to have increased among fraudsters likely as an insurance measure against potential market crashes or sudden shifts in investor sentiment triggered by price volatility swings seen with digital assets like Bitcoin throughout last year’s trading sessions..

US Victims Disproportionately Targeted for NFT Frauds

In addition, US citizens made up a disproportionately large portion of victims targeted for NFT frauds while centralized exchanges continued sending significant amounts of money towards fraudulent activities according data compiled from Chainalysis’ research into crypto crime trends throughout 2020-2021 . Crypto ATMs were surprisingly not commonly used for illicit activities as only 1% out of all payments made towards crypto swindles originated from these machines according to findings released by Chainalysis earlier this month..

Conclusion

Overall crypto crime has dropped significantly across various categories like those outlined within Chainalysis’ February 16 report but potential risks still remain especially when it comes to investment and romance scams which have proven particularly difficult for law enforcement agencies around the world tackle despite concerted efforts aimed at minimizing losses attributable these types criminal activities involving digital assets such as cryptocurrencies and nonfungible tokens (NFTs).

ChatGPT’s ENS Domain Sells for 139X Initial Sale; Registrations Decline

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• ChatGPT’s ENS domain sold for 139x of its initial sale, resulting in a 46% increase in 24-hour trading volume.
• The chatgpt.eth domain was bought for 6 ETH on OpenSea, with value close to $10,000 when compared to the market price of Ethereum.
• CoinMarketCap data revealed that ENS‘ token price picked up a 2.15% increase in the last 24 hours due to increased AI adoption and Microsoft’s actions.

ChatGPT’s ENS Domain Sale

ChatGPT’s Ethereum Name Service [ENS] domain sold for 139x of its initial sale, resulting in a 46% increase in 24-hour trading volume on the NFT marketplace. The chatgpt.eth domain was bought by LongDuck for 0.043 ETH and then sold by Ishmilly for 6 ETH (9,981 USD) on Opensea #ENS #Web3Names #EnsNames https://t.co/CBSEHnwZp1 pic.twitter.com/249hOwJVu7 — ENS Sales Bot 🤖 (@EnsSalesBot).

ENS Collection Volume

The collection volume of ENS rose significantly following the sale and this meant that there were other assets traded under it as well; leading to it remaining top of the domain sales standings despite a 335% volume increase from another collection according to Dune Analytics data which showed 10,248 registrations for February 2023 so far – slightly lower than December 2022 and January 2023 figures .

Impact of ChatGPT

The rise of ChatGPT has had an impact on the crypto space leading to Fetch [FET] and SingularityNET [AGIX] tokens recording tremendous value increases since its introduction; as well as an extra one million domains registered within two months during Q3 2022 according to OpenSea records .

CoinMarketCap Data Analysis

CoinMarketCap data showed that ENS‘ token price picked up a 2.15% increase in the last 24 hours along with 20.26% increase in trading volume within same period due to more tokens being transacted than day before regardless of profit or loss accrued; indicating increased AI adoption and Microsoft’s actions taking effect across crypto ecosystem .

How Much are 1, 10 & 100 ENS Worth?

It is currently unclear how much 1, 10 & 100 ENS are worth today as market prices can fluctuate rapidly making it difficult to ascertain exact figures .

Bitcoin Network Difficulty Hits 1-Year High as Price & Hashrate Soar

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• Bitcoin’s network difficulty recently reached close to 40.0T, a level not seen in over a year.
• The increase in network difficulty is due to the recent surge in price and hashrate of Bitcoin.
• The Bitcoin network difficulty adjusts itself every 2016 block (about every two weeks) to keep the average time to mine a block at 10 minutes.

Bitcoin [BTC], the world’s leading cryptocurrency, has seen a remarkable ascent in its price and other accompanying metrics. Most notably, the network difficulty, which is an important metric for gauging the difficulty of mining new blocks in the Bitcoin blockchain, has been on the rise. Blockchain.com’s stats show that the difficulty was very close to 40.0T at the time of writing, which is the highest in more than a year.

The Bitcoin network difficulty adjusts itself every 2016 block (about every two weeks) to keep the average time to mine a block at 10 minutes. This means that the difficulty becomes more challenging to mine a block as the difficulty increases, and vice versa. It is also worth noting that adding extra computing power (hash rate) to the Bitcoin network increases the network’s difficulty, making it harder for miners to solve the cryptographic puzzle needed to mine a block.

The current Bitcoin hashrate indicates an increase in computing power. After the hashrate dropped in December 2022, observed data revealed a surge in January 2023, indicating a higher monthly contribution. This increase in hashrate is likely due to the increase in the price of Bitcoin, as miners often use the most profitable coins to mine.

The remarkable ascent of Bitcoin [BTC] is an important development in the broader cryptocurrency community. Not surprisingly, the price increase seen by other coins and tokens followed the king coin’s price increase. The rise in network difficulty is yet another indication of the growing demand and interest in Bitcoin and cryptocurrencies in general.

It is important to note that while the network difficulty of Bitcoin is currently close to the highest it has been in more than a year, it is still far lower than the all-time high of 70.7T seen in August 2018. As the demand and usage of Bitcoin continue to grow, the network difficulty is likely to increase further in the coming months.