Bitcoin for $21,000? Is the purchasing chance arriving soon?

Spread the love

A number of on-chain metrics reported corrections when Bitcoin dropped on the charts last week. In reality, BTC fell to as low as $43,000 for a short period, with major reshuffling seen after Futures Open Interest plummeted by $4 billion.

Other indicators, such as the Bitcoin financing rate, also witnessed a reset, with Grayscale’s premium recording a low of-3.77 per cent. AMBCrypto has recently announced a promising reboot for the ASOPR, in which it was identified that bad hands had been washed out.

However, one particular metric carrying historical importance did not correct much. Interestingly, it could possibly alter the course of the rally going forward.

Bitcoin NUPL continues to avoid 0.5 reset

According to Glassnode’s latest report, the strength of the current Bitcoin rally can be shown by BTC’s Net Unrealized Profit and Loss or NUPL. In the past, the NUPL has frequently retested the 0.5 mark during stock market crashes. While a 0.5 re-test has been seen several times during both the 2013 and 2017 rally seasons, the same has yet to be found in the current market.

Here, it’s worth remembering that market conditions have certainly improved over the years in terms of customer viability and hodling sentiment, with sales pressure not fuelling major outflows for Bitcoin.

Source: CryptoQuant

Further, data from CryptoQuant appeared to indicate that bitcoin outflows from exchanges tended to hold their low levels throughout the week, with long-term hodlers unfazed by a 21 percent decrease in cryptocurrency rates.

RECOMMENDED READ:  FTX Token, STEEM, Stellar Lumens   Price Movement Analysis for 17th March, 2021

The persistence displayed by investors came to fruition at press time as Bitcoin had managed to build a foothold above its immediate resistance of $47,400 over the last 24 hours.

While it’s still a little early to expect the launch of a new bullish leg for Bitcoin, according to Willy Woo, over $45,000 convergence is a good indication of stabilisation.

If history repeats itself, does NUPL reset carry a damaging outcome?

Although the NUPL did not record a 0.5 reset during this rally, it has traditionally occurred during any bull cycle. According to info, the realised price trading is currently $14,511, and if the NUPL fell to 0.5, it will mean that Bitcoin would drop to $21,766 on the floor.

That would mean a 55.76 percent decrease from BTC’s press time position, a drop that would totally strip away all of BTC’s gains from 15 December 2020.

Although historical odds are worth noting, it is also important to consider the macro-difference between the previous rally and the new one, with Bitcoin at the receiving end of more adoption than ever before.

For instance, the average weekly investment into Grayscale’s Bitcoin Trust during Q4 of 2018 was $2 million. The average investment in GBTC for Q4 of 2020 was $217.1 million. Needless to say, the course of history for Bitcoin is indeed changing.

 418 Interactions,  6 today

What is the concept of Crypto Arbitrage? – Earn Money With Cryptocurrency

Where there is a price gap between two or more exchanges, there is an opportunity for cryptocurrency arbitrage. Arbitrage is Read more

Central Bank of Nigeria (CBN) and Nigeria’s SEC iin talks about crypto regulation, 2020 crypto guidelines  suspension unchaged.

The Securities and Exchange Commission (SEC) of Nigeria has reported that discussions with the Central Bank of Nigeria (CBN) about Read more

Bank of Korea’s Governor is the first to criticize the “limitations” of crypto-assets.

In South Korea, there has recently been a large increase in crypto-investments. Unlike in the United States, regulatory authorities in Read more

Bitcoin Price Movement Analysis for 16th April, 2021

Today, the Bitcoin price is plummeting as buyers race to win after it hit an all-time high of $64,945. Bitcoin Read more

The Nigerian Securities and Exchange Commission (SEC) claims that the central bank’s crypto ban has caused business disruption.

The Nigerian Securities and Exchange Commission says it is collaborating with the central bank to develop a regulatory system for Read more

RECOMMENDED READ:   Grumpy Cat meme coin has raised $70,000 for animal shelters.
Finance authorities dismiss cryptocurrencies, in the wake of Coinbase’s IPO celebrations

Economic gatekeepers are taking a closer look at blockchain as mainstream coverage of the Bitcoin bubble and Coinbase listing intensifies. Read more

Romanian university intends to consider cryptocurrency payments for admissions fees.

The academic college, which has about 11,000 students, stated that the inclusion of crypto payments was part of a campaign Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

Leave a Reply

Contact Us