Bitcoin correction is required after breaking through key resistance levels. The market is still far from “euphoria”, which could push the price of cryptocurrency to $ 86,000 next year. Such conclusions are included in the company’s Stack Funds report.
Analysts called the recent decline in the price of bitcoin by thousands of dollars “healthy”. In their view, market participants are still in the “faith” phase, which will eventually become “euphoria”.
The research is based on Glassnode’s unrealized profit and loss data. The corresponding graph is built on the ratio of the current bitcoin price to the market value of coins at the time of their last move.
According to the Stack Funds methodology, “euphoria” corresponds to indicator values above 0.75 (at the time of writing, it is at 0.60, which means “faith”).
“Optimism” corresponds to the range of values from 0.25 to 0.50, and “hope” – 0-0.25. Anything under 0 is “surrendering”.
26 November 2020 Stack Funds Research by ForkLog on Scribd
The bitcoin price went to the “faith” stage in October, breaking the 0.50 mark. The market was at this stage throughout 2017, when the price of bitcoin increased more than 20 times.
“Currently, the indicator indicates that the market has just jumped to a new wave, rejoining a“ faith ”phase at the end of October. Extrapolating the data from the previous bullish cycle, even if there was a 2,250% movement quarter, would indicate that the price of bitcoin will rise to $ 86,000 next year, ”the report said.
Stack Funds are shared by many analysts. Quantum Economics founder Mati Greenspan is considering the recent correction procedure.
“A 17% disadvantage is quite common at this stage of the market cycle.”
– Mati Greenspan (tweet and money advice) (@MatiGreenspan) November 26, 2020
Twitter account teklords wrote that an urgent correction is needed before a new, even more impressive, price pump.
35 day pump. Now cool. This disadvantage is much needed. Daily RSI retreats to middle level territory.
I have a feeling that the next pump will be even stronger.
– teklordz (@teklordz) November 26, 2020
Some market participants are confident that the next bitcoin correction will open good entry points for altcoin trading fans.
– Mayne of Tether (@Tradermayne) November 24, 2020
At the time of writing, the first cryptocurrency is trading at $ 17,770. The price has been consolidating for several days in a row after falling sharply from the $ 19,000 level.
Earlier, ForkLog reported that whales were in the process of transferring coins from wallets to exchanges. This could announce a new wave of Bitcoin sales.
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