Bitcoin Strives to Maintain $70,000 Value as Analysts Predict Significant Upsurge
Summary:
Analysts at Glassnode suggest that Bitcoin's price is gearing up for a significant upward shift, attributing its recent recovery to $71,000 to lessening sell-side pressure and volatility easing. Key on-chain metrics suggest a potential for huge Bitcoin growth, despite flow of new capital into the Bitcoin network significantly slowing down from record highs. Bitcoin's flash crash to $56,500 on May 1 was followed by a rebound past $60,000, with various analysts predicting future growth if the cryptocurrency holds its current position.
Bitcoin (BTC) struggled to maintain its value above $70,000 on the date of May 22, according to predictions from Glassnode's analytics team anticipating a substantial upward shift for the leading cryptocurrency. As the intensity of distribution and the pressure from the selling side eases, Bitcoin's value is steadying its course, data from Cointelegraph Markets Pro and TradingView indicate. After plummeting from record highs, Bitcoin took a turn for the worse, with significant pressure in distribution leading the cryptocurrency to bottom out at $56,500 on May 1, the lowest since March 5 this year.
The recent rebound of Bitcoin value to hit $71,000 has been attributed to a relaxation in the selling pressure and 'volatility compression.' Importantly, most leading on-chain metrics demonstrating a tendency towards balance. Glassnode analytics report that over the last couple of months, both one-year and two-year bands have seen a significant dip, using their Supply Last Active Age Band metric. The 3 year plus cohort seems to be increasing indicating that holders are waiting for an upturn in Bitcoin price before selling.
A Local divergence between Long-Term Holder (LTH) and Short-Term Holder supply is emerging according to Glassnode analysts, hinting at lessening pressure from distribution among seasoned investors. The larger narrative of 'resets' come into play as Bitcoin bounces back from its tumble to $56,500, resetting price valuations and long-term market anticipations along various parameters. Crucially, according to Glassnode's report, key on-chain metrics are indicating a huge potential upsurge in Bitcoin movement.
By utilizing their Sell-Side Risk metric to keep tabs on volatility, Glassnode analytics have estimated the total value of on-chain spending (as evident in Realized Profit + Realized Loss) relative to the asset class size (Realized Cap). The report reveals that the Sell-Side Risk Ratio has seen a substantial drop in recent weeks, suggesting that the market has found a certain level of harmony during this period of cryptocurrency correction.
With the support for Bitcoin growing stronger, the cryptocurrency managed to surge past $60,000 after its flash crash to $56,500 on May 1. Noted analyst, Daan Crypto Trades commented, “Bitcoin’s monthly chart is pretty clean. It is getting close to engulfing last month’s candle. It also held the key area around the ~$60K region, which marked the highest monthly candle closes at the last 2021 cycle top(s)."
Supporting data from IntoTheBlock emphasizes the significance of this shift, indicating two major support lines above $60,000. Ali Martinez, another analyst, expressed through his chart on the X social platform that if Bitcoin continues to hold its place above $65,125, the next Bitcoin high before a potential brief correction could hit approximately $77,593. However, this article mustn't be interpreted as investment or trading advice. Each trading or investment move comes with its own set risks, and readers are recommended to do their own research before making any decisions.
Published At
5/22/2024 10:30:00 PM
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