Another day, another ATH for Bitcoin, the largest cryptocurrency in the world.
A few days after BTC soared past the $45,000 and $47,000-price thresholds on the back of a Tesla-fueled price hike, the cryptocurrency is back in the news after it crossed the much-anticipated $50,000-mark. Following the news that MicroStrategy is selling $600M in convertible senior notes to purchase Bitcoin, BTC has emerged to record yet another ATH on the price charts, with the cryptocurrency market cap increasing to $1 trillion.
At the time of publishing, BTC was priced at $50,299, with the cryptocurrency rising as high as $50,602 on charts.
As described earlier, many assume that Bitcoin’s current price hike was fuelled by news of Tesla’s $1.5 billion purchase of Bitcoin last week and more recently, MicroStrategy’s accelerated plans to buy more BTC. Given the rumours that Apple may be the next to dive in, and the fact that Miami is looking to add $BTC to its balance sheet, it might not be shocking that the cryptocurrency has risen in the way it does.
Just as last time, the $50k breach of Bitcoin was backed by a host of key indicators flashing the bullish signals on the charts.
For example, the 200-day moving average for active addresses on the network has continued to climb on the charts. In reality, Bitcoin’s development activity has also “quietly” risen to a 2-month high.
That’s not it, though, with the liquid supply of Bitcoin already dropping on the charts. The same has been pointed out recently by Glassnode, with the article in question noting that investors are gradually purchasing or holding crypto assets in the long term. It added that,
“With float in the network drying up faster than ever, signs are promising for continued BTC price increases into the future.”
On the contrary, there were other signs that seemed to indicate that corrections were coming in for Bitcoin in the near term. Until a few days ago, Bitcoin’s 30-day MVRV ratio, for example, was at its highest level since its peak on 14 January. In reality, BTC’s 365-day MVRV ratio was also approaching its ATH charts, with the indicator in question pointing out that Bitcoin was certainly in the ‘overrated’ region.
Glassnode had noted at the time,
“…we’ve seen Bitcoin’s MVRV jolt even higher during the previous ATH push, but it’s safe to say that current MVRV levels are unorthodox and seldom sustainable, and usually beget a price correction in order to normalize. “
With Bitcoin reaching $50k on charts, however, many argue that metrics such as the MVRV would count for nothing. In reality, it can be argued that there is a preference for the same, particularly since one of Bitcoin’s Elon Musk-related hikes was not backed by most of the major indicators. Instead, all it took was a tiny Twitter bio-update to drive BTC up the price charts.
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