Bitcoin continues to unite! Analyst: The bull market is still here, but it will be a tough year

Bitcoin (BTC) was stable over the new year. After falling below the $ 50,000 level on December 28 of last year, it recently rose and fell to between $ 45,000 and $ 48,000. It brought in $ 46,258 last day. Small increase of 0.2% over 24 hours. Since hitting an all-time high of $ 69,000 on November 10 of last year, the drop has reached 33% so far.

Despite Bitcoin’s slowing performance, some major coins have resumed their competition, according to data from CoinMarketCap, with ETHereum (ETH) up 1.83% to $ 3,800 and Binance Coins (BNB) and Cardano (ADA). ) up 1.19% each and 1.49% higher, but Terra (LUNA), PolkaDOT (DOT) and Avalanche (AVAX) fell around 1% -3%.

The market should continue

On-chain data analytics firm Glassnode pointed out in its latest report last week that the Bitcoin market remains weak, market volatility has declined, and prices rose slightly from 2021. Last year , the currency continued to fluctuate in the same way. week, from a high of $ 51,654 to a low of $ 46,197.

Glassnode noted that while there is little hope for electrical equipment in terms of different chain sizes, the manufacturing process is generally lacking. Traders continue to trade bitcoin for dormant wallets that have more cash in them. Cycling Profits and Indicators Market is expected to continue uniting as early as 2022 as bullish and bearish symbols will be equal.

short-term holding loss

Glassnode noted that many long-term holders in the market are still losing money. While long-term holders seem to have more confidence, the current value is lower than their value on the chain. . These floating bitcoins will generally generate high sales and delay returns on investment.

According to data from Glassnode, the known price for short-term Bitcoin holders is around US $ 51,400, while the known price for all transactions and long-term holders is US $ 24,400 and 17, respectively. US $ 700. .

Referring to the awareness of short-term value holders, Glassnode noted that with a current market value of $ 51,400, the group’s investments are generally in the red and could lead to a sell-off.

Glassnode also pointed out that holders of the short term MVRV indicator, the ratio of market capitalization (MV) divided by market value (RV), is currently in pain falls below 1.0. In 2018, short-term holders continue to lose money during the bear market between mid-2019 and 2021, when the MVRV indicator is below 1.

Separation of altcoins from bitcoin

Additionally, Edward Moya, market analyst at New York forex broker OANDA, told Coindesk that separating altcoin and bitcoin prices could put additional pressure on the price of bitcoin.

Edward Moya said: The Bitcoin bull market is still here, but it will be a tough year as many traders will appreciate altcoins.

According to data from Coinmarketcap, the current market value of the entire cryptocurrency market is $ 2.22 trillion, and the market value of Bitcoin is $ 876 billion, and its share of the total market value. fell below 40% to 39.4%. Ether is worth $ 452.7 billion, or 20.3% of the total market value.

According to a report by “Coindesk”, historically Bitcoin likes to drop in January. Over the past nine years, Bitcoin’s average return in January was -3.3%. However, at the same time, the statistics, Bitcoin up to 50% payback time is good.

The difference in yield in January is therefore mixed. According to seasonal data, this means that the February price is higher and because the average monthly Bitcoin price in February is the price, some traders who will use Bitcoin may choose to sell before volatility or choose the return when the correction is 13%.

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