It was a nice day for the cryptocurrency markets, but the May crash didn’t happen. Bitcoin has bounced back to its support line and, for now, the losses have been erased.
When news broke that The May Drop had taken place, Bitcoiners were shocked that one of the most anticipated events in cryptocurrency history had taken place. The May Drop was a major event for Bitcoin enthusiasts and Bitcoin maximalists, as it suggested that the bubble had finally burst. It’s an event that has done little to dent the bubble’s still-boiling price, though, as the Bitcoin price has jumped back up to $4400.
Bitcoin has erased its losses and is now back over $4400. It is still too early to tell how much higher we can go, but it seems like the most upward momentum has been regained.. Read more about bitcoin price 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 2020.
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 2020, 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 2020, 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 2020’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 2021 as they did in October 2020, 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.
Bitcoin’s price action was quite erratic for those traders watching the CBOE exchange, but the cryptocurrency was stable enough to help erase over $45 billion in losses in the last week. Notably, the price increase comes after a negative month, where BTC dipped below the $7,000 range and lost over $10 billion in market capitalization.. Read more about ethereum price and let us know what you think.
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