The Bitcoin price has surprised many as it finished the month strong at $41K. This has gotten many by surprise as they expected Bitcoin would continue with its bearish trend. Its price flip is proof that the crypto market is still volatile.
The last three months have not been the best for Bitcoin; the last three months specifically have been the worst. BTC/USD experienced a dip to $29,000 in July shuffled high resistance levels that changed the trend, making the price close high. According to analyst Alistar Milne commented on a bullish engulfing pattern that is confusing even for seasoned traders.
Surprisingly, On-chain data suggests that some long-term holders(LTHs) are selling despite the price rise. Analysts believe that it is a classic stage in a market cycle. Analysts compare the spent output profit ratio indicator (SOPR) to the LTH to determine profitability. Through SOPR, you can know the value of coins that moved in a specific time frame and know their profitability. According to Glassnode, if the trend is towards a neutral value, profitability is low.
Some long-term holders are selling off for minimal profit, which is indicated by LTH-SOPR hitting a meagre two days in a row.
Even though it is a day of sunshine for BTC, bulls are still working hard to push the price even higher so that it can go past $42K. This is evident by the two tests in the last 24 hours. According to PlanB, when they use the stock-to-flow price model, Bitcoin’s latest recovery can be compared to clockwork. PlanB predicts that bitcoin will attain a minimum of $47,000 by the end of August. There is still hope that Bitcoin will rise amidst everything happening in the market.
Image by Blockzeit CH from Flickr.
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