Bitcoin for the second time this week has touched $30,000 but the crypto market remains highly volatile. Price dips throughout the last two weeks show that the popular Bitcoin is quite resilient. It is now showing signs of consolidation after prices bounced off recent lows.
The lows had investors questioning their choices and decisions. But traders held onto their convictions and continued with their investment in Bitcoin. At the time of writing this article, Bitcoin was trading at $30,204. It was up by 3.32% in the last 24-hours. Ethereum took advantage of the top crypto’s price gains and swiftly crossed the $2,000 mark. Ether recorded an uptrend of 3.34% in the last 24-hours.
Bitcoin could be on its way to a bottom which is expected to be followed by a lengthy period of consolidation. Root, a pseudonymous analyst, tweeted a chart that highlighted that realized losses are reaching bear market highs. Previous bear markets saw a greater level of realized losses than are currently present. They suggest that the pain could begin to pass, and this would push Bitcoin onto the slow path to recovery. Moreover, Bitcoin’s RSI is entering a period that has historically preceded outsized returns on investment for long-term investors. Jurrien Timmer, Global Director of Macro at Fidelity, believes the entity-adjusted dormancy flow from Glassnode is, presently, at the lowest level since the 2014 and 2018 lows.
The Advanced NVT signal suggests that the weak hands may be nearing capitulation. It looks at the Network Value to Transactions Ratio (NVT). This also includes the standard deviation bands to see when Bitcoin is overbought or oversold. Currently, the NVT shows that Bitcoin is being oversold.
Furthermore, data from Glassnode shows that the hash rate for the Bitcoin network is at an all-time high. This means a substantial increase in mining infrastructure with the most growth in the United States.
