Despite gaining over 10% since its recent multi-year low at under $58,000, bitcoin is still not out of the woods yet as the bears continue to dominate, said Ali Martinez.
Meanwhile, fellow analyst Ted Pillows believes BTC, alongside the S&P 500, is poised for more losses, but the cryptocurrency is poised to outperform the index.
In its most recent post on BTC’s market structure, Martinez outlined the three critical factors that have to change to overcome its current state. First, it’s the aSOPR (Adjusted Spent Output Profit Ratio), an on-chain metric measuring whether bitcoin investors are selling their units at a profit or a loss on average. It continues to hover below 1, showing that most sales are concluded by holders realizing losses.
“The first technical confirmation of a trend reversal from bearish to bullish will be the aSOPR metric crossing back above zero,” the analyst said.
The second is the Puell Multiple, which measures miner profitability by dividing the daily dollar value of newly issued BTC by its 365-day moving average. It shows whether miners are experiencing extreme income stress, as seen earlier this year during one of the largest miner walkouts.
The last factor brought up by Martinez was the Reserve Risk Multiple. The on-chain technical indicator demonstrates the confidence of long-term holders relative to its price, and it’s also below 1. Bitcoin would require a “confirmed break on the aSOPR, followed by zero-line breakouts on the Puell Multiple and Reserve Risk Multiple” to validate the start of a new bull market.
Michaël van de Poppe believes $82,000 holds particular significance in the current BTC structure, as the 50-week Moving Average is positioned around that level. Historically, this key MA has served as major resistance, and bitcoin solidified the end of its previous bear market only after it reclaimed that line.
At first, BTC would have to break past the 21-week MA (currently around $75,000) before heading toward the more important 50-week MA, said van de Poppe.
Separately, Ted Pillows focused on bitcoin’s relation and correlation with the S&P 500, claiming that both asset classes will “drop over the coming months.” However, he expects the cryptocurrency to emerge victorious after the final leg down. For now, though, the reality is quite different, as the index is up by over 10% this year, while BTC is down by almost 27%.
The post These 3 Missing Pieces Are Holding Bitcoin Back, Says Analyst appeared first on CryptoPotato.
Rising US-Iran tensions risk destabilizing global oil markets and hinder diplomatic efforts, increasing uncertainty in the Strait of Hormuz. The post US-Iran tensions rise as
Inner Circle’s qualification highlights the growing opportunities for regional teams to compete on global stages, potentially reshaping the CS2 landscape. The post Inner Circle qualifies
Pickford’s record highlights the disparity between his international success and club challenges, impacting sports betting and fan token markets. The post Jordan Pickford sets England
Jayden Adams’ death highlights the vulnerability of crypto markets to misinformation, emphasizing the need for cautious trading practices. The post Jayden Adams’ death at 25
Blockchain Bodega is here and you know the vibes. We’re at the intersection of hip-hop culture and web3, exploring this new digital frontier. Who better to guide you through these uncharted lanes than Ock Chain – The Bitcoin Boss and the Consensus Corner Boys?
Ock Chain doesn’t just cook up random details about cryptocurrency; he lives it. Ock’s been deep in the game since Bitcoin was just a baby.
And let’s not forget about the Consensus Corner Boys. They’re our skilled crew of blockchain enthusiasts. They’re here to educate, entertain, and enlighten.
Welcome to Blockchain Bodega!
Copyright © 2023 Blockchain Bodega. All rights reserved.