Famous crypto-trader and analyst Jacob Canfield recently expressed these feelings when he tweeted,
“I have so many friends and family that held #Bitcoin for years underwater only to sell it at break-even around $13,000-$15,000.
Now they’re asking what’s the best price to get back in.
They missed a 4X on their money and they still want to FOMO in.
Retail is definitely here.”
To get an idea of whether the current price level is feasible to buy Bitcoin again, it might be helpful to remember that during Bitcoin’s last bull run, the price was in the region of $8,500 to $9,000 at the market cap to the thermocap ratio currently seen. With regard to the recent market rally, this would imply a price rise of more than 135 per cent in less than 30 days.
Source: Twitter
While there are some claims to be made in support of arguing that this time the price rally is different, it is worth noting that a 135 per cent rise in the press time trading price will bring BTC beyond $110,000. Now, 30 days may be too short a time span, but although the timetable may be unclear, all indications indicate that the timeframe is not.
Another metric that points to a market rally is the amount of trading on derivative exchanges. On 11 February 2021, crypto-derived exchanges traded a new, all-time daily high volume of $187.5 billion. During the previous bull market, the derivatives trading volume set a record $93.36 billion on 26 November 2017.
Latest trading rates have been much higher than the 2017 estimates, and this suggests a promising shift in the future. Trade volume on derivative exchanges has also signalling a shift in sentiment and new trend reversals that are crucial to Bitcoin’s price rally. Present trading volumes suggest that the market rally will increase and that the uncertainty will continue, and there is a strong possibility that this may be a good time to buy back and HODL or wait for unrealised gains to be booked.
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