BTC Price Action Still Splits Consensus on Bitcoin Staying High – What Do You Think?
Bitcoin
BTC
Tickers below
$22,875
Wall Street rallied around the Jan. 17 open as nervous analysts awaited more information.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Opinions vary on the fate of Bitcoin
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD briefly touched $21,594 on Bitstamp, the highest since September 13.
While bullish impulses swept the charts, reactions remained conservative amid an atmosphere of skepticism about the true source of returns in the form of bitcoin
One such cautious view came from Michael van de Pop, the founder and CEO of trading firm Eight, who drew attention to the behavior around major exponential moving averages (EMA) in the crypto sector.
“Food for thought; “Total market cap and altcoin market cap are at the 200-day EMA, while bitcoin is breaking that volume without,” he noted.
“Most of the time, markets are bottoming out, but the question is, are we going to rally from here?”
1-day BTC/USD candlestick pattern with 200-day EMA (Bitstamp). Source: TradingView
Meanwhile, popular crypto trader Tony advised “sorry” after becoming BTC’s long-term leader after more than a week of reversals.
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“Yesterday I hit the top step as expected. Today we will be eager to: – Push up and recheck to confirm a safe long position when we are on top – Push up below the limit high and close out. Short activation,” he wrote in an analysis published ahead of the Open.
As reported by Cointelgraph, pessimistic predictions about the future of BTC’s price action have accompanied every step of its rise from a two-year low, with some still convinced that a drop to $12,000 is imminent.
Meanwhile, Cointelegraph readers themselves are more optimistic about Bitcoin’s prospects.
Current feedback in our latest Twitter poll is in favor of continued profitability, with 37% of over 1,000 users believing that Bitcoin is back on its “moonshot” journey.
However, another 22% fear it could end up in a “total collapse” reverting to current growth.
“Is Bitcoin Back?”
Elsewhere, blockchain analysis firm Glasnode suggested a “wait and see” approach, debating how long the good times will last.
Related: Bitcoin Price Breakout or Bull Trap? She has 5000 Twitter users
In the latest edition of its weekly newsletter, The Week On-Chain, researchers looked at the major lines in the sand for distribution versus profit.
Bitcoin’s Adjusted Spent Product Profit Ratio (aSOPR) will cross the 1 line below, indicating a possible key reversal. If it crosses the threshold, owners will have a collective incentive to sell at a profit, leading to an oversupply and driving the market down again.
Cointelgraph previously wrote that SOPR hit a two-year low in mid-November.
“With an explosive 23.3% rise to start the year, a broad swath of bitcoin investors (miners) have seen their net holdings (operations) turn profitable.” The sheer volume of coins that have changed hands in recent months is restoring their values,” Glasnod concludes.
“With aSOPR and a P/L ratio breaking 1.0, the next big question becomes the test of whether the market can sustain these gains.”
Bitcoin Adjusted Profit Ratio (aSOPR) revealed chart (screenshot). Source: GlassNode
The thoughts, ideas and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Source: CoinTelegraph
