A Glassnode Analyst Believes Bitcoin is Gearing Up for a Surge
A lead on-chain analyst from crypto analytics firm Glassnode suggests that Bitcoin (BTC) is preparing for its next upward movement. The analyst, known as Checkmate, points out that Bitcoin’s profit/loss momentum for short-term holders has recently recovered and is now in positive territory again.
The profit/loss momentum indicator is used to identify the existing trend of an asset. According to Glassnode, short-term holders are defined as traders who have held Bitcoin for less than 155 days. Checkmate describes this metric as the most responsive on-chain trend indicator developed by Glassnode.
Two Interpretations for the Green Reversal
Checkmate offers two possible interpretations for the green reversal: final profit-taking before a downturn or the return of strength. However, the analyst leans toward the latter interpretation due to Bitcoin’s resilience in the face of a tumultuous macro environment.
Bitcoin Still in a “Value Zone”
Checkmate also believes that Bitcoin is still in a “value zone” because it is currently trading below its true market mean price of $29,700. This true market mean price represents a cost basis model for all coins acquired on secondary markets.
Short-Term Outlook and Value Investors
While there is uncertainty about Bitcoin’s short-term performance, Checkmate suggests that value investors believe that BTC bears are wrong at this point. Currently, Bitcoin is trading at $27,629 and has experienced a slight decrease of over 1% in the past 24 hours.
Hot Take: Bitcoin Shows Signs of Returning Strength Amidst Macro Backdrop
The lead Glassnode analyst suggests that Bitcoin is displaying signs of returning strength despite the turbulent macro environment. With the profit/loss momentum for short-term holders recovering and Bitcoin trading below its true market mean price, there is optimism among value investors. While short-term outcomes remain uncertain, the resilience of Bitcoin in the face of market challenges indicates a potential surge in the near future.
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