Uptrend on Bitcoin is still possible despite questionable performance of the currency in April
The upward trend that everyone has been waiting for in the cryptocurrency market may actually begin after the conditions outlined by Blockware Principal Analyst Will Clemente are meet.
Short-term holder cost basis
The cost basis term is often used to describe the average entry price of investors into an asset. The short-term holder cost basis shows that the average entry of short-term Bitcoin holders is currently at $47,000.
Whenever the short-term cost base crosses the implied price HODLer, investors receive bullish or bearish signals, depending on the direction of a crossover. In the current case, if Bitcoin continues to decline, the market will most likely plunge deeper as short-term traders’ selling pressure escalates.
HODLer implied price
The second metric used by the Blockware analyst is the HODLer implied price, which is essentially the realized price of an asset divided by its liveliness, which is a metric that reflects the behavior of holders by measuring the number of liquidations which causes a metric’s rise. In case coins remain dormant, the metric declines.
If the HODLer implied price measure crosses the base of short-term costs to the holder, the market should expect an increase in liquidation volume, which creates enormous pressure on the price. In case STH moves away from the implied HODLer price, the market remains more stable.
While Bitcoin’s move above $47,000 may become an extremely bullish event for the cryptocurrency market, we may still see enormous pressure on the price as some traders may decide to break even on their positions after a massive 20% dip.
At press time, Bitcoin is trading at $40,456 after falling to $38,111 which has caused extreme fear in the market.
