According to the latest week of Glassnode in the series a reportBitcoin (BTC) should remain higher than the basis of the cost of a short term (STH) to avoid possible negative risks. Historically, this price level was a decisive pivotal point between the local market and the bear, which makes it a major area to see it.
Bitcoin should avoid slipping without the basis of the STH cost
Since the beginning of February, BTC has been traded within a narrow range ranging between $ 93,000 and $ 98,000. The leading cryptocurrency by the market has managed to face the impact of many major economic events, including US President Donald Trump, the proposal Commercial definitions.
However, BTC flexibility does not guarantee immunity from the transfer of market morale. The Glassnode report confirms that in order to maintain its bullish momentum, it must remain higher than the basis of the STH cost, which is currently about 92,500 dollars.
According to the report, BTC is currently trading from $ 1,000 to $ 5,000 above the STH cost. Previous data indicates that the basis of the STH cost usually is a pivotal point as the last average buyer moves between a state of profit or unreasonable loss.
If BTC decreases to less than 92,500 dollars, this means that the average short -term holder is in an unveiled loss, which may lead to panic. On the other hand, trading is higher than this level means that most of the short -term holders are in profit, which may enhance the upscale momentum.
The Glassnode report includes a chart that shows this trend. As shown below, whenever BTC reaches the highest new level ever (ATH), followed by a correction, it tends to touch the bottom range of the STH cost foundation.
The graph also shows that the historical BTC declines usually spanned about 1 standard deviation without the basis of the STH cost. By applying this model to the current market cycle, BTC may decrease to 71,600 dollars, where the lower range of the model is placed.
The encryption market near a “decisive moment”
The report indicates that the encryption market is currently witnessing the stage of accumulation that reflects those in May 2021.
As a result, the market approaches a decisive moment, characterized by the sharp price currency in either direction. The report explains:
If the demand remains strong, Bitcoin can create a new domain over the aths. However, the constant decrease in purchase pressure can lead to a deeper correction by the distribution, similar to the post -Aran stages. This is likely to be panic among new buyers who see recently acquired coins from a profit to an unrealistic loss.
While the risk of the negative side remains, BTC Bulls can be happy as the expected US dollar is likely to decrease benefit The leading cryptocurrency. Likewise, feelings about BTC are Starting To refer after stagnation in the madmen madness. At the time of the press, BTC is trading at $ 97,100, an increase of 1.2 % over the past 24 hours.
Distinctive image from Unsplash.com, plans from Glassnode and TradingView.com
