Here’s one certain thing about Bitcoin you may not know

Spread the love

Over the bulk of the last 48 hours, Bitcoin, the world’s biggest cryptocurrency, has traded only below the $60,000 price mark, which is not far from the crypto’s all-time high. Normally, such consistent restructuring will be positive news, right? Yeah, really. However, everything must be placed in perspective and articulated in relative terms.

If you look at the cryptos below BTC, you’ll see that ETH and XRP are on the rise. Contrary to common opinion, the altcoin sector does not imitate Bitcoin, with two of the sector’s most influential alts defying the general price trend and reporting spikes on their own.

What exactly does this entail? Is it finally alt season? Perhaps. Maybe not. What is obvious is that all of these cryptocurrencies have grown in value as a consequence of ecosystem-centric innovations. The aim of this essay is to address the question, “Will anybody be worried about Bitcoin’s recent “stagnant” price movement?”

Yes, it is stagnant. At least, it is what many people are pointing to as a consolidatory step on the charts these days. These fears are, to some degree, warranted. After all, Bitcoin is the crypto-standard market’s bearer, and its success is vital to the overall market. However, considering BTC’s reluctance to maintain a violation of the psychological $60k mark, it appears that there isn’t anything to be worried about.

Remember this: according to Santiment, Bitcoin isn’t even in “mega overvalued territory,” with its 30d and 365d MVRVs just off their respective local peaks. In reality, these metrics show that there is still a lot of space for expansion, with a lot of future price upside on the way. Historically, price drops have followed local tops in the same.

Since we are still far from these peaks, BTC can be predicted to rise more, pending recent stabilisation, before correcting once more.

RECOMMENDED READ:  Blockchain startup, Blockcap, announces plan of expansion

 

However, it would be difficult to determine if the aforementioned hike will be sufficient to break its ATH.

Santiment’s study also analysed the cryptocurrency’s 3-year and 5-year Latent Circulation, noticing that a large amount of very old coins were recently transferred across addresses. According to the paper, “this is a positive indication, delivery is continuing.”

Source: Santiment

Furthermore, other indicators such as Mean Coin Age seemed to indicate that the network-wide accumulation pattern is still going strong, considering the fact that there was some distribution in March.

Finally, understanding the dynamics of whale activity is critical for predicting what to expect in the future. This is particularly true considering that whales have not only dictated market changes in the past, but whale opinion is a strong indicator of where BTC will end up in the short term.

The number of daily whale transactions worth at least $1 million has increased by more than 740 percent in the last year, with the daily average increasing from 229 on 1 April 2020 to 1,930 on 1 April 2021.

 

Source: Santiment

In reality, amid brief hiccups and the fact that BTC hasn’t reciprocated or expressed the bullish sentiment of alts like ETH and XRP, its whale investors are declining to panic, with the brief decline in supply looking to level off at the time of writing.

That being said, it wouldn’t be a typical crypto-market if there weren’t a few red flags raising their heads. Although the above indicators point to positive times ahead for BTC, a few others seem to be on the conservative side.

Consider the financing rate for Bitcoin. A few days ago, it was estimated as +0.10 percent, very similar to the 0.12 percent levels seen a few weeks ago. The latter occurred in conjunction with the cryptocurrency’s local peak in March, which was accompanied by a major price decline.

RECOMMENDED READ:  The Logbook: The origin of the World Wide Web

 

Source: Santiment

This means that there isn’t much room for the Funding Rate to increase, with higher amounts just raising the risk of a short-term top and a resulting reversal.

There’s still the question of feeling. One thing is whale sentiment, but what about supermarket sentiment? Bitcoin’s weighted social opinion is reportedly close to a one-year peak. It is worth noting, though, that in the past, related discoveries have fuelled the trend of Bitcoin in the opposite direction.

 650 Interactions,  2 today

READ ALSO:
Top Coinbase’s crypto-risk considerations, revealed

Coinbase has been the main news in the cryptocurrency industry over the last few days, with its public debut via Read more

Why this pattern could be important in keeping Bitcoin price over $60,000.

Bitcoin's price has risen by almost 9% in the last fortnight, with the cryptocurrency currently priced at $61k at press Read more

Why you need to keep an eye on these altcoins: ATOM, BNB, and THOR

Although eight of the top ten altcoins by market capitalisation are on the rise, there are many altcoins with smaller Read more

Bitmain’s latest Ethereum ASIC mining rig could not solve the GPU shortage.

A new Ether ASIC mining rig is on the way, but can it support Nvidia's GPU problems? On April 16, 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

Bitcoin is down as Turkey’s central bank cracked down on cryptocurrency transfers.

Bitcoin has had a decent few months, with the world's biggest blockchain reaching its all-time high on the charts fewer Read more

Lover of “dogs and memes”, Elon Musk accused of pouring “jet fuel” on GameStop and Bitcoin at a critical moment

How much jet fuel is needed to send GameStop, Bitcoin, and Dogecoin to the moon? Depending on where you stand Read more

The Massachusetts Securities and Exchange Commission is attempting to suspend Robinhood’s broker-dealer licence.

According to state authorities, Robinhood has threatened novice buyers. The Securities and Exchange Commission of Massachusetts is attempting to suspend Read more

When it comes to crypto policy, are Biden and Yellen on the same page?

The lack of a centralised regulatory body for digital assets has long been a barrier for crypto-investors in the United Read more

Dogecoin doubles in a single day, bringing its year-to-date profits to 5,000 percent, as the price of Bitcoin falls.

The most famous meme of all time In a single year, bitcoin has increased by 12,600%, resulting in a slew Read more

Turkey is considering a moratorium on blockchain transfers.

The central bank of Turkey has also prohibited payment providers from providing fiat-to-crypto onramps for cryptocurrency exchanges. In Turkey, a Read more

Leave a Reply

Contact Us