With a geared up price action and an accelerated upward movement for most currencies on the back of Bitcoin’s rally, newer levels of sentiment and behavior were witnessed market-wide. While all rallies come as a sigh of relief, this Bitcoin rally in particular was of importance after the many negative news and sentiments that were surrounding BTC for the past couple of months.
After Bitcoin’s weekly gains of almost 30% the big question still remains, is Bitcoin leaving the sandbox finally? BTC analyst, Benjamin Cowen in a recent video presented optimism about Bitcoin’s supposed exit from the Sandbox. He said:
“After spending the summer in the sandbox, the price of Bitcoin may be finally coming out of it. We still need more time to tell, but momentum is with us for now. Whether we leave it now or later, it is more or less a win-win opportunity.”
Source: Benjamin Cowen Youtube
Bitcoin has been in a sandbox since the May 19 price drop falling by 40-50% after entering the under $40K zone. The region between $30K to $40K where Bitcoin has been stuck since its drop is the sandbox. The sandbox basically included a lot of roller-coaster price movements which further induced fear at the lows and FOMO at the tops.
While there have been attempts by the king coin to breakout out of the sandbox this one counts because after oscillating in the lower zone of the sandbox since June 15, this is the first attempt by the king coin to break out.
Now there can be two possibilities, one, that Bitcoin falls a little and consolidates more before rising, the second that Bitcoin finally breaks away from the sandbox. According to Cowen, both cases were a win-win because if the former happens then more BTC can be bought at a low price and if the latter happens then another price high triggering an alt season could be possible.
That being said, it is notable that Bitcoin’s 30-day MVRV which is used to identify short-term holders’ profit or loss, was presenting some worrying signs. These levels are higher than the one seen in June after which we saw a deep retrace in price. However, on the upside, these are the highest levels since March 15 after which the price rallied (after experiencing a minor dip).
A report highlighting the same pointed out that ‘usually this indicates that shorter-term holders are incentivized to take some profits off the table if anything spooks them.’
Source: Sanbase
Thus, by looking at metrics, it can be safely concluded that while Bitcoin is leaving the sandbox, its price can consolidate between the lower and upper sandbox levels for a short-term. Either way, like Cowen said, it should be a win-win scenario for investors and traders.
