May 27, 2023
“BTC Price Showdown Looms as Speculators Take Charge”
Bitcoin (BTC) is currently at a crossroads, with speculators in the driver’s seat as it nears a key trend line. According to a new analysis by Checkmate, lead on-chain analyst at Glassnode, the cryptocurrency is approaching a “decision point” for price action.
The analysis, uploaded to Twitter on May 26th, showed that BTC/USD is giving long-time market participants cause for concern. With a number of downside price predictions floating around, on-chain analysts are increasingly focused on short-term holders (STHs) to determine the direction of the price.
STH-MVRV is a metric that measures the value of coins moved by STHs in comparison to the overall Bitcoin market cap. When it reaches 1.0, it corresponds to the STH realized price, which is the average price at which STH coins last moved. Right now, STH-MVRV is at 1.022, making a 1.0 reading equate to a BTC spot price of around $26,500.
Checkmate noted that this level should provide psychological support in a bull market. However, a swift recovery would be necessary to justify further upwards movement.
The STH-SOPR metric is another tool used to gauge the profitability of spent outputs. Currently below the 1.0 line, it suggests that there is a loss dominance among STHs, meaning that buyers would need to step in to push the price back up.
The STH Profit/Loss momentum metric is also retreating from its “green” phase, which has been in place since January 2023. This metric is designed to spot rapid changes in the market regime and trend, and it has now returned to neutral gear.
Checkmate concluded by calling on hodlers to step up and help the bulls drive the price higher. He noted that losses by STHs can only be sourced from local top buyers, and so counter-intuitively, buyers need to be selling at the local bottom to create the FOMO bounce reaction.
With Bitcoin at a decision point, speculators are in the driver’s seat as the cryptocurrency approaches a key trend line. On-chain metrics such as STH-MVRV, STH-SOPR, and STH Profit/Loss momentum are all showing signs of a potential retracement, and hodlers are being called upon to help the bulls drive the price higher. As always, investors should do their own research before making any decisions.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
