Crypto-index fund provider Stack Funds described yesterday’s pullback as a “health correction” that was necessary before Bitcoin continued its bullish journey.
Earlier this week, Bitcoin broke through $ 19,000 after showing gains for seven consecutive weeks. According to the company, since October, the cryptocurrency has been at the overbought level, once again confirming the need for a correction.
The company verified accounts related to market psychology and claimed that market participants are currently in the “faith” stage of the cycle, which will eventually enter the “euphoria stage”.
To support its claims, the fund is citing Glassnode’s unrealized net profit / loss data for Bitcoin, often referred to as NUPL, which compares the current price of BTC with the last time each currency on the chain was moved.
The fund explained that historically, when the number of people was charging more than 95%, it was a good indicator of a market peak. Color display of parameters in percentages for various market conditions (euphoria -> 75%, faith – from 50% to 75%, optimism – from 25% to 50%, hope – from 0% to 25%, surrender –
The “ faith ” that Bitcoin just entered this month lasted more than a year in the beef market in 2017 when the price of BTC jumped from $ 850 to nearly $ 20,000, which is an increase of 2,250%.
Extrapolating from the bullish market model of 2017 to the current state of BTC, the fund predicted that even a quarter of this price increase would result in Bitcoin surpassing $ 86,000 next year, when we enter the euphoria stage.
Other analysts also believe that this is little more than a glimpse into the road, and Matte Greenspan, founder of Quantum Economics, suggests that the correction may already be over, adding:
“The 17% recovery is very modest for this stage of the cycle.”
Cryptocurrency personality Lark Davis noted this morning that it didn’t take long before support levels halted the $ 16,500 retracement, asking, “Was that a volatility? Or are we going below?”
Cryptocurrency trader Mayne of Tether told more than 70,000 followers on Twitter that the withdrawal would create good opportunities to buy altcoins. Another merchant account called “teklordz” tweeted that refunds are important:
Data from analytics platform Santiment showed that profits among bitcoin holders could be massive, with bitcoin holders in the short and long term earning 15% and 63%, respectively.