Bitcoin [BTC]: You have a cause to laugh if you hold the king coin

Increased trading activity in the last 24 hours caused the leading coin, Bitcoin [BTC], to reclaim its psychological $20,000 price mark. The last time the king coin traded at this price level was on 4 October, when it exchanged hands at $20,336. 

According to CoinMarketCap, at the time of writing, BTC traded at $20,224.77, with its price having grown by 5% in the last 24 hours. The surge in price came after the coin spent the past few weeks oscillating between the $19,000 and $19,500 price levels. 

As of this writing, $80.58 billion worth of BTC has been traded in the last 24 hours. The coin’s trading volume was up by 197%, per data from CoinMarketCap. 

According to data from Coinglass, 123,530 traders have been liquidated in the general cryptocurrency market, with $817.98 million removed in the last 24 hours.

The amount of BTC liquidations within the same period totaled $372.62 million. This represented 44% of the total liquidations in the market. 

Source: Coinglass

The surge in BTC’s price put the buyers back in control of the market, as can be gleaned from the movements of the daily chart. 

At the time of writing, BTC’s Directional Movement Index (DMI) revealed that coin accumulation had been underway in the last two days. Still, ongoing at the time of writing, the buyers’ strength (green) at 24.74 was solidly above the sellers’ (red) at 16.22.

The position of BTC’s Chaikin Money Flow lent credence to the statement that buyers had control of the market, at press time. Positioned above the center line at 0.06, the coin’s buying momentum was high.

Moreover, in an uptrend, it meant that coin accumulation would continue as long as buyers were able to sustain the rally.

Source: TradingView

BTC on the chain

According to on-chain data platform Santiment, a look at BTC’s Market Value to Realized Value (MVRV) on a 30-day moving average revealed that holders were likely to generate a 2x profit on average if they sold their coins at the current price. The asset’s MVRV at press time was 3.66%. 

Source: Santiment

Also, due to the price rally, the king coin enjoyed positive bias from investors at the time of writing. At press time, BTC’s weighted sentiment was pegged at 2.587.

Source: Santiment