The crypto markets have gotten off to a rocky start in May, and they may not be done yet. Bitcoin is back in the lead, but it was such a volatile month, the cryptocurrency is still up only 2% on the month so far. While the rest of the market is down nearly 5% on the month, Bitcoin is up by less than 2%.
Bitcoin, once again, is in the headlines for all the wrong reasons. After a month of the currency’s value plummeting, losses erased, and then some, the market is finally in the green.
Bitcoin has continued to struggle in the aftermath of the recent crash, with the flagship cryptocurrency falling by roughly $1,000 in a single day on April 18th, but recovering slightly over the following days. The latest bitcoin price rebound was triggered by a number of factors, but the announcement of the Bakkt crypto exchange was the most significant, as it will give traders the opportunity to buy and sell bitcoin on a regulated exchange.. Read more about bitcoin price usd and let us know what you think.
The price of Bitcoin (BTC) soared over $44,600 on Aug. 7 amid anticipation that it may see another upswing like the one that started in October 2023.
On profit-taking emotions, Bitcoin hit $44,600 before reverting lower. TradingView.com is the source for this information.
At least two indicators predicted that Bitcoin will continue its huge rise. The first is Glassnode’s Entry-Adjusted Net Unrealized Profit/Loss, which helps investors figure out if the Bitcoin network as a whole is profitable or losing money.
Getting to Know NUPL and Its Heat Map
A NUPL reading over zero implies that the network is profitable, whereas readings below zero indicate that the network is losing money. The farther NUPL deviates from zero, the better it is in assisting investors in identifying market tops and bottoms.
They use a heat map to identify the degree of departures from zero. During an upswing, for example, red denotes “capitulation,” orange “hope,” yellow “optimism,” green denotes “belief,” and blue denotes “euphoria.”
After successfully rebounding off the red zone in March of that year, the Bitcoin NUPL climbed upwards of zero in October 2023, as its heat map changed colors from yellow to green.
The costs then rose from about $10,000 to over $65,000.
NUPL modified for Bitcoin input. Glassnode is the source of this information.
Bitcoin subsequently fell below $30,000, at which time its NUPL mood shifted from greed to denial, and then to worry. A strong purchasing mood around the $30,000 mark, on the other hand, helped keep Bitcoin’s upward feeling alive, balancing out the fear with hope.
For the first time since October 2023, mood shifted back to belief as Bitcoin recovered $40,000 and surpassed its upward pace. In a tweet, Lex Moskovski, Chief Investment Officer of Moskovski Capital, also emphasized Bitcoin’s upside potential in the wake of the NUPL upgrade, saying:
“We’ve arrived at the Belief stage.”
Alternatively, the popular Fear and Greed Index hit 69, indicating a Greed mood that hasn’t been witnessed in the market since May.
As bitcoin reaches $44,000, the fear and greed index has climbed to “greed.” Alternative Source
The second metric is
On a related vein, market researcher Will Clemente pointed out another signal that predicted a recurrence of October 2023’s upward surge. The fractal was about the relationship between short-term and long-term Bitcoin investors.
Short-term holders traded their Bitcoin holdings to long-term holders, with the latter accumulating almost as much as the Bitcoin supply in August 2023 as they did in October 2023, according to Clemente.
The price of Ethereum has risen over $3K, prompting concerns of a sell-off.
“Long-term investors currently have over 66% of supply, while short-term holders have almost 20%,” the analyst said. “Long-term holder supply peaked at slightly over 68 percent before the major bull run started in October.”
The majority of the selling has been done by short-term investors. Glassnode is the source of this information.
This further showed that the current price arose as a result of demand from investors who had no immediate plans to sell Bitcoin.
On Saturday, Bitcoin hit an intraday high of $44,600 before reversing down owing to profit-taking emotions. At the time of writing, BTC was trading for $43,500.
The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
The cryptocurrency market has recovered from a massive correction, with the price of Bitcoin (BTC) trading at $4400 at the time of this writing. This price action essentially erases the losses that occurred the previous week, when the price of Bitcoin dipped by over 10% in a matter of days, before rebounding to the $3600-3700 range.. Read more about bottom bitcoin and let us know what you think.
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