The price of Bitcoins has been a pleasure to watch over the past few weeks, firmly reflecting from USD 74,000 to recover over 100,000 USD. Interestingly, the latest data in the chain suggests that the most significant cryptocurrency can be prepared to recover the current price of the highest quality and perhaps setting off in a fresh bull.
Bitcoins price on the traces of Gold
In the Quicktake post on the Cryptoquant platform, an analyst on the chain Ibrahim Cosar put out Insight into the potential trajectory of Bitcoin prices over the next few months. The appropriate metric here is the difference in growth rate (market capitalization vs. implemented), which analyzes the difference in growth rate between market capitalization and completed capitalization.
According to COSAR, the rate difference indicator helps to assess investors’ behavior (whether the market is too cynical or hopeful) and various market cycles. The indicator also helps to identify the correlation between the actual boost in value and the boost in prices, while assessing the balance of the price trend.
Source: CryptoQuant
As you can see in the graph above, a positive area (marked by a green color) usually signals stubborn market conditions. This suggests that market capitalization is growing faster than the completed limit, and more investors are entering the market and take up-to-date positions.
The negative (red) zone correlates the market conditions and the main price corrections with bears, because more and more investors are unloading their assets. With the decrease in prices and increased implementation of losses, investors trust in the market begins to fall.
The illuminated chart shows that the price of Bitcoins was a witness to the change from the red (bear market) to green (bull market) in recent days. Cosar believes that this change means a potential parabolic boost in the BTC price – as you can see in the price of gold in the last few months.
The bull cycle can still be at: Cryptochan CEO
Two months ago, the founder of Cryptoquant Ki Adolescent postulated that the BTC price reached its peak and that the bull cycle was over. However, after impressive Bitcoin price efficiency in recent weeks, an expert in the chain analytics returned to his declaration.
According to the Bitcoin market, it has become relatively more diverse and seems to be moving away from the time-honored theory of the cycle. CEO Crypto I mentioned To previous cycles controlled by aged whales, miners and up-to-date retail investors, while ETFS issuers (ETFS), strategy (MST) and institutional investors are the main players in the present.
However, he has already mentioned that the Bitcoin market is still drowsy during the absorption of up-to-date liquidity, despite the fact that the latest price campaign is extremely stubborn. That is why the cryptographic founder suggested that he was waiting for a clearer signal before taking up-to-date market positions.
In this letter, the flagship cryptocurrency is valued slightly above USD 103,000, which reflects any significant movement in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Recommended photo from Istock, chart from TradingView
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