Bitcoin [BTC], the world’s largest cryptocurrency, has had a rollercoaster ride in 2019. Despite positive developments however, the cryptocurrency has suffered its share of downsides as well, largely due to hacks and nefarious activities. The recent Binance hack that resulted in the loss of over 7000 BTCs was yet another blow to an industry, edging towards mainstream adoption.
In the middle of these scandals, WhaleAlert reported a significant portion of Bitcoin being moved in the market. The cryptocurrency data aggregation website revealed that on May 9, 2990 BTCs were moved from a Bittrex wallet to an unknown wallet.
The transaction had a time stamp of 5:38:33 and a hash of 700dca3ee579d15d86f2955d2f6cf8edcef8dae93844c16712698a4d0d66c5ea. The unknown wallet’s address was 36DQqc3ct7NqjN9oP8gPNmHdBpih3Qt45Y, while the transaction was completed in 38 drops.
The sizable transfer came in the wake of Bitcoin breaching the $6000 mark on a lot of major exchanges, while at the same time, its market cap crossed the $100 billion mark after almost 5 months.
Many proponents of the field have speculated that Bitcoin’s bear market is almost over and that there might be a bull run around the corner. One of the luminaries who shared this prediction was Tuur Demeester, Adamant Capital’s CEO, who had said,
“I am not ready to say yes, that we are in a new bull market but I do definitely think that we are in the last phase of the current bear market.”
Subscribe to AMBCrypto’s Newsletter
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.
Subscribe to AMBCrypto’s Newsletter