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It’s “another day, another ATH” again, as cliché and dull as it is. On the heels of a five percent hike over the last few hours, Bitcoin, the world’s largest cryptocurrency, broke the much-anticipated $60,000 mark, with the crypt building on 2021’s earnings again.
As expected, BTC’s $60k breach was welcomed and cheered by many in the community, especially as Bitcoin’s market cap recently passed $1 trillion again.
Understandably, the size and speed of BTC’s price movements have caught many by surprise, particularly because, over the last 2-3 weeks, the cryptocurrency ranged from less than $47,000 to less than $54,000.
Curiously, Bitcoin’s new ATH came just over a year after the notorious Black Thursday event, a day that saw the cryptocurrency drop to as low as $4,000 on charts. Since then, BTC has been hiking, with a DAA spurt helping the cryptocurrency climb on the graph.
Here, it’s worth remembering that Bitcoin’s $50k violation and later, $55k, has been precipitated by big events, including MicroStrategy’s decision to buy more Bitcoin by selling $600M worth of senior convertible notes.
Though endogenous innovations such as these have clearly improved, on-chain measurements have also added to Bitcoin’s bullish case over the past few weeks and months.
Bitcoin’s supply of crypto-exchanges, for example, has started to decline on indexes, with the same recently touching values last seen in early December. At the moment, BTC was trading at just over $16,000, with the cryptocurrency already going to the bull run that saw it rise above its 2017-ATH and double its valuation in less than a month. Ergo, with the supply beginning to decline, the cryptocurrency may be projected to increase ever further in the near term.
In reality, until a few days ago, Bitcoin’s Network Realized Profit or Loss had not yet reached its height, meaning that many investors had yet to sell their bags for large profits. This also suggested that, at least in the short term, these holders are looking for more upside down on the price charts.
Furthermore, the Whale Transaction Counts have risen too, as Santiment has recently pointed out.
However, a few bearish signs can still be found here. Consider Bitcoin’s Weighted Social Opinion index, for example. Until a few hours ago, the same was at its lowest in five months, amid the asset’s price driving and breaking its previous ATH of more than $58,500.
In the light of all these observations, it is apparent that whilst the world’s biggest cryptocurrency movement in the short term has been overwhelmingly positive (as demonstrated by its price movements), a few bearish signals can be seen on its maps. Ergo, a big change in any direction would not have been surprising. Again, this could be a debate about nothing. After all, we’ve seen recent occasions where BTC has grown massively, unbacked on-chain indicators. Perhaps all that’s needed is a Twitter reminder these days.
Right now, the important thing is, how long before $100k falls?