The price of Bitcoin (BTC) took a bullish turn on June 13 as the price hit $ 39,252, but many analysts are still on the verge of determining whether the digital asset is ready to continue its uptrend.
To this day, the crypto market remains at the forefront and is two months away from Bitcoin’s all-time high of nearly $ 65,000. A Delphi Digital market analysis identified a “major head and shoulders pattern” that could “cause more pain in the short term if BTC dips below $ 30,000.”
With that in mind, now is the time to take a look at some key data points to get a better perspective on the next step in Bitcoin price.
Short-term holders suffer losses
A 50% price drop in the past two months may seem extreme to those unfamiliar with the volatility of the cryptocurrency market, but that’s no surprise to long-term hodlers who have seen several drops. on an even greater scale over the past decade.
As the chart above shows, a drop of 70% or more is not uncommon for BTC, especially after a significant price increase, hinting that the possibility of further pain is still a threat as the battle of the bulls fall in the average range of $ 30,000. .
The rapid fall in prices caused both new and old Bitcoin holders to pull out, leading traders to sell at a loss according to Spent Output Profit Ratio (SOPR) data highlighted by the cryptocurrency analyst filbfilb.
Over the past two days there have been signs of an SOPR reset, indicating that average portfolios are selling at a profit again.
The Crypto Fear and Greed Index (CFGI) also hit its lowest level since the March 2020 massive sell-off initiated by the Covid-19 pandemic.
The high levels of fear currently being felt by the majority of traders have much left out, as fears of further losses remain a legitimate possibility.
For contrarian investors, however, low scores on the index are a signal to “be greedy when others are afraid” as Warren Buffet would say and the chart above shows that buying during times of greatness. fear tends to be a good entry level.
Related: Here’s how Bitcoin’s near-death cross could be a signal to buy against the tide
The feeling starts to rebound
While it is true that Bitcoin has seen its price drop by over $ 30,000 over the past two months, it is important to note that the amount it has dropped as well as its current price is almost double the previous record. of 2017, shining a light on the importance of rallying over the past six months.
Decentrader’s chain analysis shows that an “oversold” signal was triggered recently, “suggesting that BTC may soon be ready to turn around and move higher.”
The Active Addresses Sentiment Indicator compares the 28-day price change, indicated by the orange line, with the 28-day change in chain active addresses, which is represented by the gray stripe.
The orange line moving from below the dashed green line to the active change of address band is considered a bullish signal, and this most recently occurred on June 10, indicating the possibility of a reversal of the market.
According to Rekt Capital, a popular analyst on Twitter, Bitcoin is still on track to hit a new all-time high.
the #BTC Halves (blue) occur in the year before a new candle 1
And candle 1 is where $ BTC experiencing the most explosive growth
Whatever FUD to BTC is right now, it won’t change the long-term effect BTC Halving has on the price of Bitcoinhttps: //t.co/1NTrPs8wfW pic.twitter.com/F7C9P6ehMO
– Rekt Capital (@rektcapital) June 13, 2021
For now, it might be best to take a break before looking at the charts and worrying about how Bitcoin chooses. The long-term outlook remains strong as countries like El Salvador have started to choose BTC as legal tender and more and more people are interested in cryptocurrency.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.