After a year-to-date return of over 80%, some analysts alert that Bitcoin is approaching overbought territory. Still, a specific on-chain metric suggests that BTC is primed for another massive increase.
Market Value Up By 60%
Bitcoin’s market price has actually risen by nearly 60% given that the start of the month. BTC was just recently able to reach a brand-new all-time high of $52,800 as a new age of retail investors flocked to the coin.
More than 20,000 new addresses have signed up with BTC’s network every day over the previous five weeks, signaling a spike in user adoption. It appears that Tesla’s $1.5 billion Bitcoin investment put Bitcoin in the spotlight as trust in the worldwide monetary system erodes.
Bitcoin Looks “& ldquo;
Unsustainable & rdquo; Despite the huge gains that BTC has actually published over the past month, some analysts think that a major correction is underway.
JP Morgan’s Global Market Strategist Nikolaos Panigirtzoglou has suggested that Bitcoin “& ldquo; looks unsustainable & rdquo; at the existing price levels. Panigirtzoglou maintains that an inelastic supply of Bitcoin resulted in a rate premium for both “& ldquo; real cash & rdquo; and & ldquo; speculative & rdquo; financiers, while retail interest dwarfing the institutional inflows.
For this reason, the expert expects that volatility would need to reduce to sustain the recent upswing.
Plenty of Room to Go Up
Despite the grim worst-case situation, Bitcoin looks basically strong. Whales have actually gotten in a buying spree, diminishing the amount of Bitcoin available on exchanges and trading platforms. Market behavior of this type minimizes the selling pressure behind the cryptocurrency, as a result topping its downside capacity.