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Bitcoin crosses $6,000 mark on major exchanges despite FUD in crypto community

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Source: Unsplash

Bitcoin reclaimed its $100 billion market cap recently and despite the Binance hack yesterday, the price of Bitcoin crossed the $6,000 mark. The price of Bitcoin at press time was $6078, and it had a market cap of $107 billion.

Bullish Trend of Bitcoin

Source: CoinMarketCap

According to CoinMarketCap, Bitcoin’s price has turned bullish over both, the smaller and larger time frames.

24-hour: 3.51%
7-day: 12.34%
YTD: 62.13%

The above is an indication of Bitcoin being on a positive trend since the beginning of 2019. Bitcoin has shown more than a few bullish confirmations, which explain the rally above the $6,000 mark. Bitcoin’s prices in the $6,000 range were last seen on November 14, 2018. However, the prices soon fell by a massive 45% in over 5 days.

Golden Cross

Bitcoin’s prices showed the formation of a Golden Cross on April 22, following which, the whole sentiment of the community turned bullish.

BARR Pattern

BARR Pattern indicates the reversal of a trend. In Bitcoin’s case, it was the end of a downtrend and the start of an uptrend which hopefully, would be a long-term trend.

Source: TradingView

Is this the “Bull Rally?”

Bitcoin’s price is set to face massive resistance between $6,100 and $6.500, a price range which acted as a support for the prices for almost 3/4th of 2018. Although this rally might seem like the end of the bear market and the start of a bull rally, it can only be confirmed after the prices close above $6,500.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time writer at AMBCrypto and a part-time novice trader.

Bitcoin

Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000

Akash Anand

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Bitcoin's on-chain/off-chain valuation indicators they key point of focus as crypto heads towards $13,000
Source: Pixabay

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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