The cryptocurrency market was bathed in red and the trend seemed unlikely to change in the near future. Despite developments in the space managing to keep certain cryptos afloat, many are falling under the pressure of the bear. Bitcoin Cash [BCH] is an example of the latest fall after it plunged by over 8% over the last 24 hours.
Bitcoin Cash [BCH]
BCH was falling by 8.51% over the past day and was valued at $243.30, at press time. The coin noted a market cap of $4.31 billion with a 24-hour trading volume of $1.12 billion. Over the past seven days, the coin plunged by 16.5% and continued to dip by 2.66% over the hour. However, the coin had started to correct itself.
The maximum trading volume was registered on OEX, noting a trading volume of $170 million via the BCH/USDT pair. The second place was taken by CoinBene via BCHABC/USDT and noted a volume of $91 million. LBank took third place with a volume of $70 million with BCH/BTC pair.
At press time, LTC was also nearing a tremendous fall, as it noted a dip of 4.40% over the day. The coin was valued at $68.28 with a market cap of $4.23 billion. The 24-hour trading volume of the coin was $2.48 billion and it noted a cumulative fall of 10.32% over the week. The coin continued to fall by 1.05% over the hour.
LTC was highly traded on Coineal via LTC/BTC pair with a volume of $293 million. Second place was taken by DOBI Exchange as it noted a volume of $253 million with LTC/USDT pair. Coinall followed the two as it noted $211 million in trading volume with LTC/BTC pair.
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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
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