Bitcoin (BTC) has been taking the lead in the crypto market’s recent recovery, posting a sustained 1.20% growth to $27,593.35 at the time of writing. Crypto on-chain analytics firm Glassnode’s recent weekly report suggests that the broader market’s gravity is pulling the premier cryptocurrency in either direction.
Over the past 24 hours, Bitcoin’s price soared to a high of $28,432.04. However, the sideways movement driven by mild yet dynamic volatility has prevented the coin from maintaining the $28,000 price level as support. Glassnode highlights several essential metrics for consideration based on Bitcoin’s current price actions. One of these metrics is the Short Term Holder’s unrealized profit or loss, which has cooled off and returned to a break-even level of 1.0 before bouncing back to 2.6.
The report also suggests that a more bullish growth for Bitcoin will rely on the cyclical trends in the long-term supply. There is evidence that long-term holders remain consistent in their buying habits, despite occasional cooling periods. With the equilibrium point currently overextended, the likelihood of increased cash injections into the coin is considered high for the mid to long term.
Bitcoin’s capacity to maintain a sustained market rally is currently swayed by numerous macroeconomic events in markets worldwide. Interest rate hikes in the United States, the UK, and the European Union have remained consistent over recent years. Bitcoin’s growth trends have shown a strong correlation with the mainstream stock market.
This overlap between digital assets and traditional stocks means that investors may share similar strategies, leading to similarities in market behavior. If Bitcoin aims to sustain a rally and retain the $28,000 price point as support, a decoupling will need to occur for the cryptocurrency to create its own growth curve.
It’s crucial, as always, to conduct thorough market research before investing in cryptocurrencies. The growth potential of Bitcoin, as outlined by Glassnode’s report, by no means guarantees consistent market gains. Market conditions may shift, and risks should be taken into account when considering investment opportunities.
Source: Coingape
