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:  Employee Imprisoned In A Recent South Korean Cryptocurrency Mining Fraud

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.

 402 Interactions,  4 today

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

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

RECOMMENDED READ:  Facebook’s Libra Will Play a Huge Role in the Future of Money, Top VC Believes
Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Ethereum Price Movement Analysis for 4th April, 2021

Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset's price even higher. In the Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Leave a Reply

Contact Us