- Analysis by CryptoQuant indicated a potential market trigger for BTC.
- Market measures and indicators appeared positive.
- Daily and weekly increases in the price of bitcoin indicate that the market might be recovering from the decline of FTX.
Over the past week, Bitcoin [BTC] saw increases, but its price remained below forecasts. BTC’s price had risen by almost 3% during the previous seven days as of the time of publication. Additionally, with a market capitalization of $327.2 billion, BTC was trading just above the $17,000 threshold at $17,019.18.
Even so, a new bull movement can start shortly if the stars align in the investors’ favor. Author and analyst at CryptoQuant Dan Lim recently released an analysis that speculated on the possibility of a BTC market bottom.
The volatility is nothing new, and it’s a major factor in why experts advise novice cryptocurrency investors to exercise extreme caution when designating a portion of their portfolio to digital currencies. The value of bitcoin has increased steadily over time, comparable to that of every other cryptocurrency available.
Should Bitcoin investors be happy?
According to Dan Lim’s findings, BTC’s market value to realized value has remained below one for over 170 days this year, and for 134 days in 2018. However, there has been a recent trend reversal, which indicates that an episode in which BTC’s market value exceeds its realized value is possible in the near future.
It’s interesting to note that Dan also published another analysis that demonstrated the failure of BTC’s hash ribbon methodology. The analysis shows that, for the first time since the golden cross of the Hash Ribbon model, the dead cross arrived without a rise in the price of Bitcoin.
Due to the bank run at the FTX exchange, one of the biggest mining pools in the world, F2Pool, had a sharp fall in hash rate. Additionally, as a result of this, the price of Bitcoin fell to almost $16,000. In addition, Bitcoin miners released 10,000 BTC as of December 1st, which made things difficult for miners during the past several weeks.
A memorable December, then?
The $15,800 and $17,200 levels on the daily BTC chart appeared to act as support and resistance for the price of the king coin, respectively. Additionally, the reading of the Moving Average Convergence Divergence (MACD) suggested that BTC might soon overcome its resistance and move up the price ladder. Investors in BTC may therefore be at a competitive advantage in the market.
Further boosting the likelihood of a northbound breakout was a slight increase in the Money Flow Index (MFI).
According to CryptoQuant’s data, BTC’s exchange reserve decreased as well, which was a good indication because it showed that there was less selling pressure. However, BTC’s transaction volume has just fallen to $260,626,928.14, a two-year low. This was troubling since it signaled that decreased network activity could harm Bitcoin in the upcoming weeks.
Source: Glassnode
