Cryptocurrency analyst Axel Adler, in his assessment of Bitcoin’s current market situation, highlighted the updated data from the “Bitcoin Heat Macro Phase” metric. This indicator aims to guide investors by reflecting the overall market temperature with a single numerical value.
According to Adler, high values for this metric (close to 50%) indicate that the market may be overheating. This is attributed to factors such as overvaluation, increased profit-taking, selling pressure from long-term investors (LTH), and historically high levels of ETF inflows. In such cases, the market is likely experiencing a correction or distribution phase.
Meanwhile, lower values (around 30%) reflect market composure. During these phases, low profit-taking, moderate ETF inflows, and limited selling pressure from long-term investors suggest favorable conditions for accumulation.
Adler, noting that the current value is 44%, stated that the market is neither overheated nor cheap. “There’s no bull- or bear-dominant environment,” the analyst said. “The market isn’t in overbought territory, but it’s not in opportunity territory either. Profit-taking is slowly increasing, but a mass rally hasn’t yet begun.”
*This is not investment advice.