Connect with us

Bitcoin

Here’s A Key Bullish Metric For Bitcoin (BTC) That No One’s Talking About

Published

on

Right now, Bitcoin (BTC) goes for in around $8200 apiece and currently trades for a market capitalization (at this price) of around $139 billion. Much time has been spent over the last six weeks or so trying to figure out where price will eventually bottom out and, subsequently to, turnaround to resume its overarching upside momentum.

Much of this analysis and time has been spent focusing on previous price levels as relates to things like moving averages as well as volume metrics.

There’s another key metric on which we can focus, however, that might be more accurate as far as allowing markets to ascertain exactly where things stand in the bitcoin price right now – market capitalization.

BTC Daily Chart

BTC Daily Chart

The thing with market capitalization in the space is that it doesn’t represent what it represents in the space for which the term was coined, the equities markets. This is something that many people overlook or ignore outright when evaluating coins. Ripple (XRP), for example, is priced at around $0.77, just a tiny fraction of bitcoin’s price, but its market capitalization puts it as the third-largest currency on the market.

There is a degree of similarity between the equities markets and the cryptocurrency space in that a larger total supply will generally result in a reduced price (analogous to a company issuing more shares and its share price reducing accordingly) but that’s about why things end, especially when you take into consideration that the token market capitalization is measured against fiat.

Anyway, the point where trying to make is that with the vast majority of coins, market capitalization isn’t a reliable metric. With bitcoin, however, it is. The fixed supply combined with the ever-increasing difficulty associated with bitcoin mining (in other words, the restricted rate of new coins entering the market) creates a situation in which market capitalization can be a major indication of strength or weakness.

In turn, we can look at historic key market capitalization levels as similar in implications to historic key price levels.

And we’ve got one in and around current pricing.

As mentioned, right now, bitcoin trades for a market capitalization of a little over $139 billion. $100 billion flat is a major psychological key level from a market capitalization perspective and it’s one that initially broke back in October, when price traded in around $6000. Subsequent to the break, the bitcoin price ran to around $7000 before dipping to retest the $100 billion market capitalization level. The retest proved strong (to a degree, at least, price broke below it for a single day before resuming its uptrend) suggesting that this is a major support level in markets right now.

Fast forward to February 6, and the bitcoin price fell to $6300, representing a market capitalization of $106 billion. From here, and as mentioned, it has since appreciated to current levels.

The assumption is, then, that this retest of $100 billion market capitalization as support, and importantly, this successful retest of this level, indicates that we could finally have seen the turning point for the markets and, in turn, that we should see a continued appreciation from here on out as markets recover towards the $10,000 mark and beyond.

Nothing is confirmed, of course, and if we fall once again to the $100 billion level, it will again become a key level to keep an eye on as indicative of near-term action, but as far as technical indicators go, this one looks sound.

Let’s see what happens.

We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


Image courtesy of Global Coin Report Archives

Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

Published

on

By

Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

Continue Reading

Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

Published

on

By

Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

Continue Reading

Bitcoin

Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

Published

on

By

Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

Continue Reading

Trending