On the back of an over 5% hike over the last few hours, Bitcoin, the flagship cryptocurrency, hit the new ATH and much-anticipated $60k level, with the crypto building on 2021’s gains yet again.
As expected, BTC’s breach of $60,000 was celebrated by many in the community, especially since just recently, Bitcoin’s market capitalization passed the value of $1 trillion once again.
Understandably, the scale and pace of BTC’s price movement have taken many by surprise, particularly since for long periods over the past 2-3 weeks, the crypto was rangebound, whether under $47,000 or under $54,000.
Curiously, latest ATH came just over a year after the infamous Black Thursday event, a day that saw Bitcoin drop to as low as $4,000 on the charts. Since then, BTC has surged, with a spurt in DAA helping the cryptocurrency rise on the charts.
Here, it’s worth noting that Bitcoin’s breach of $50k and later, $55k, were precipitated by key developments, including MicroStrategy’s decision to buy more Bitcoin by offering $600M worth of senior convertible notes.
While organic developments like these have obviously helped, on-chain metrics have also contributed to Bitcoin’s bullish case over the past few weeks and months as well.
Bitcoin’s supply on crypto-exchanges, for example, has continued to fall on the charts, with the same recently touching levels last seen in early-December. At the time, Bitcoin was priced at just over $16,000, with the cryptocurrency then yet to go on the bull rally that saw it surge past its 2017-ATH and double its value in less than a month. Ergo, with the supply continuing to fall, the cryptocurrency can be expected to hike even more in the short-term.
Actually, until a few days ago, Bitcoin’s Network Realized Profit or Loss hadn’t hit a peak yet either, suggesting that many owners were yet to sell their bags at massive profits. This also showed that these holders are hopeful of more upside on the price charts, at least in the short-term.
Moreover, Whale Transaction Counts have increased too, with the same highlighted by Santiment recently.
A few bearish signs can be seen here too, however. Consider Bitcoin’s Weighted Social Sentiment metric, for example. Until a few hours ago, the same was at its lowest in 5 months, despite the asset’s price pushing and breaching its previous ATH of over $58,500.
In light of all these findings, what is clearly evident is that while the largest cryptocurrency’s movement in the short-term has been primarily bullish (As evidenced by its price movement), a few bearish signs can be found on its charts. Ergo, a major movement in either direction would not be unexpected. Then again, this might be a discussion for naught. After all, we have seen recent instances where Bitcoin has hiked, risen exponentially, unbacked by on-chain metrics. Perhaps, all it takes is a Twitter update these days.
Right now, the important question is this – How long before $100k falls?
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