After the break, BTC wakes up? The price of Bitcoin is back above $70,000, and is close to a new all-time high. After defending $67,000, buyers managed to bring BTC back to $71,000, helped by four straight weeks of capital inflows, according to CoinShares data.
In total, $2 billion was poured into cryptocurrencies in May. In The Market Check, we look at whether Bitcoin is still in an upward trend, and whether it is still possible to see a new wave of increase. Let’s analyze the Bitcoin situation using on-chain indicators!
BITCOIN FOLLOWS THE LATEST BULLISH CYCLES
The king of cryptocurrencies has still not marked a new all-time high since March. A wait that can be long for investors, but the return of capital inflows could allow BTC to return sustainably beyond $70,000.
Regardless, during the correction, BTC hit the realized price of short-term holders (STH). Buyers responded at this level, and the price remains well beyond this important on-chain level:
In theory, BTC remains in an uptrend as long as it remains above the average price of short-term holders. During the last cycle, the market entered a bull run when BTC traded above the orange curve. Thus, we can consider that the market is still in a bull market, as long as BTC remains above $62,700. Falling below this level could result in fear, as STH are entities that react strongly to emotions. We will have to monitor the price reaction in the event of a return to $62,700.
In theory, BTC remains in an uptrend as long as it remains above the average price of short-term holders. During the last cycle, the market entered a bull run when BTC traded above the orange curve. Thus, we can consider that the market is still in a bull market, as long as BTC remains above $62,700. Falling below this level could result in fear, as STH are entities that react strongly to emotions. We will have to monitor the price reaction in the event of a return to $62,700.
RETURN OF EUPHORIA FOR THE CRYPTOCURRENCY MARKET
In the previous section, we discussed the feelings of short-term holders. Market sentiments are very important in a market as volatile as that of cryptocurrencies. For the craze to be present, and for new arrivals to be able to bring demand allowing BTC to rise, the price of the king of cryptocurrencies must reach new historic highs.
The Crypto Fear and Greed Index indicator allows you to understand the market sentiment of operators by analyzing metrics such as volatility, volume or even enthusiasm on the networks
Graph representing the realized price of short-term holders of Bitcoin. Source: Lookintobitcoin
