Bitcoin (BTC) surged around Wall Street’s January 17th open as nervous analysts waited for more clues.
Opinions Divide on the Fate of Bitcoin
Cointelegraph Markets Pro and TradingView BTC/USD briefly hits $21,594 on Bitstamp, the highest since September 13th.
Reactions remained conservative amid an atmosphere of suspicion about the true source of Bitcoin’s resurgence as bullish impulses continue to storm the charts.
One such cautious view came from Michaël van de Poppe, founder and CEO of trading firm Eight.
“Food for thought; total market cap and altcoin market cap are both at the 200-day EMA, and Bitcoin is barely beating it without volume.” I got it.
“The market is likely bottoming out, but I doubt if it will bounce back from here.”
Meanwhile, popular trader Crypto Tony advised “patience” when it comes to going long BTC after more than a week of gains.
“As expected yesterday, we’ve reached the range high. Today: – Push above and retest to confirm safe long position – Push above and close below range high. Short trigger “, before opening. part of the analysis of said.
As reported by Cointelegraph, bearish forecasts for the future of BTC’s price action accompany each phase of its surge from two-year lows, and these include the upcoming $12,000 call. .
Meanwhile, Cointelegraph readers themselves are becoming more optimistic about Bitcoin’s prospects.
Current responses to the latest Twitter survey show that 37% of over 1,000 users believe Bitcoin has returned to its journey “to the moon”, supporting its continued rise.
However, another 22% fear that the current bullish trend will turn around and end in a “total crash.”
What is the market forecast for this week?
— Cointelegraph (@Cointelegraph) January 17, 2023
“Is Bitcoin Back?”
Elsewhere, on-chain analytics firm Glassnode suggested a “wait and see” approach while discussing how long the good times will last.
Related: Bitcoin Price Breakout or Bull Trap? 5,000 Twitter Users Participate
In the latest edition of our weekly newsletter, “The week on chain‘, the researchers noted a key line in the sand between profitability and supply coming closer.
Bitcoin’s Adjusted Return on Spending Production (aSOPR) metric is about to cross the bottom row, signaling a potentially significant shift. If that line were crossed, Hodler would have an aggregate incentive to sell while making a profit, creating an oversupply that could push the market down again.
Cointelegraph previously wrote when SOPR hit a two-year low in mid-November.
“With an explosive 23.3% rise to start the year, a wide range of Bitcoin investors (and miners) have confirmed that their net holdings (and operations) have returned to gains. It reflects the impact, but also sets the cost bar low due to the sheer volume of coins that have changed hands in recent months,” concludes Glassnode.
“As we are testing the breakeven point of aSOPR and a realized P/L ratio of 1.0, testing whether the market can sustain these gains will be the next big question.”
The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views or opinions of Cointelegraph.