Bitcoin’s (BTC) recent volatility has unsettled investors, as the largest cryptocurrency by market cap slid by more than five percent over the last two weeks. However, two key on-chain factors indicate that the BTC market structure is largely 0 Remains Strong Despite Volatility According to a CryptoQuant Quicktake post by contributor XWIN Research Japan, two important on-chain indicators suggest that despite the recent slump in price, the overall market structure remains strong for the flagship 1 Reading: Bitcoin Sentiment On Binance Turns Bullish – But Is The Market Setting A Trap? The first is Bitcoin’s Delta Cap – a long-term valuation model derived from the difference between Realized Cap and Average Cap – that has historically acted as a reliable floor during major 2 early August, BTC traded above this steadily rising line, suggesting that the market is building a stronger foundation compared to previous drawdowns.
A rising Delta Cap also signals capital inflows and long-term investor conviction, even during price 3 CryptoQuant analyst shared the following chart showing Delta Cap hovering around $739.4 4 BTC is currently trading below this line, a quick move to $120,000 would likely push the price back above 5 second on-chain factor pointing toward resilience in BTC market structure is the Coinbase Premium Gap, which currently stands at +11.6. The high positive value of the metric suggests stronger demand from US institutions, who are accumulating BTC at a 6 the uninitiated, the Coinbase Premium Gap measures the price difference of Bitcoin between US exchange Coinbase and global exchanges like Binance.
A positive gap means Bitcoin trades at a higher price on Coinbase, often signaling stronger US institutional buying demand. Historically, sustained periods of positive premium have preceded major bullish phases, as institutional accumulation drives price 7 analyst concluded: Together, these two metrics point toward a constructive setup: Bitcoin consolidating above $100K with strong institutional support and a long-term valuation floor steadily rising. Corrections, rather than being a sign of weakness, appear to be opportunities for accumulation within a robust structural 8 BTC Out Of The Woods? Although the two aforementioned on-chain indicators point toward strength in BTC market structure, not all analysts are as 9 instance, a fall below $105,000 might send BTC all the way down to $90,000.
Related Reading: Analyst Says Bitcoin Price Is Heading To $256K — Here’s When Another analyst recently warned that if BTC loses the support at $108,600 level, then it could fall further to $104,000. A failure to bounce from $104,000 could see BTC test the psychologically important $100,000 10 said, Bitcoin’s rapidly rising illiquid supply on Binance may play a pivotal role in sending it to a fresh all-time high (ATH). At press time, BTC trades at $109,289, up 0.9% in the past 24 11 image from Unsplash, charts from CryptoQuant and 12
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