Bitcoin (BTC) surged around Wall Street on January 17 as nervous analysts waited for more leads.
Opinions differ on the fate of bitcoin
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD briefly reached $21,594 on Bitstamp, marking its highest level since September.
As bullish impulses continued to hit the chart, reactions remained conservative amid an air of skepticism about the true source of Bitcoin’s return to form.
One such cautious measure came from Michael van de Poppe, founder and CEO of trading firm Eight, who noticed behavior around the exponential moving average (EMA) in crypto.
“Food for thought; the total market cap and the altcoin market cap are both at the 200-day moving average, while Bitcoin is barely above that without any volume.” notice for him.
“Markets are probably at the bottom, but the question is whether we will recover from here.”
Meanwhile, popular Crypto trader Tony advised “patience” when it comes to buying BTC after more than a week of bulls.
It hit the high range as expected yesterday. Today we will wait for: – A push up and a retest to confirm a safe buy position while we are up – A push above the higher band and a closing below it. sales catalyst announce Part of the pre-opening analysis.
As Cointelegraph reported, the bearish outlook ahead for Bitcoin’s price action has tracked every stage of its rally from its two-year lows, including the expectation that $12,000 will emerge next.
Meanwhile, Cointelegraph readers themselves are becoming more optimistic about Bitcoin’s prospects.
Current responses to the latest Twitter poll favor continued gains, with 37% of more than 1,000 users believing Bitcoin is back on its journey “to the moon.”
However, another 22% fear that the current optimism could turn into a “full-blown recession”.
What are your expectations for the market this week?
Cointelegraph January 17, 2023
Is Bitcoin Back?
Elsewhere, on-chain analytics firm Glassnode has suggested a “wait and see” approach when discussing how long the good times might last.
In the latest issue of their weekly newsletter, “The Week On-Chain,” researchers note that mainlines in the sand are approximating profitability versus supply.
Bitcoin’s adjusted exit profit rate (aSOPR) is about to cross the first line below, indicating a possible major change. If it crosses that line, dealers will have an extra incentive to sell at a profit, which could result in an oversupply and push the market lower again.
Cointelegraph previously wrote about SOPR reaching a two-year low in mid-November.
“With a surprising 23.3% surge at the start of the year, a broad cross-section of Bitcoin investors (and miners) has seen their net holdings (and trades) return to profit. So has the massive volume of coins that have been traded in recent months, driving down their cost base “.
“With an aSOPR and a realized price-earnings ratio testing a break-even value of 1.0, testing whether the market can sustain these gains becomes the next big question.”
The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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