Bitcoin in the sale? Cops give a sign of life

After the beginning of the year had promoted the owners of Bitcoin and Altcoins in the seventh course in the sky, has cooled the crypto market in the last week of significantly. However, a metric suggests that the bulls, Bitcoin does not have abgechrieben.

Taking a look at the “Heatmap” of the data aggregators Coin360in week-over-week, a bleak picture: Almost all of the Coins recorded in the past week, double-digit losses.

Price developments in the 7-day comparison. Source: Coin360

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Considering the tour de force of a ride, with the crypto market in February had a market capitalization of 1.5 trillion U.S. dollars in the first two weeks of February, it grew to 500 billion US dollars – get the current profit-taking as little surprise. The question now is: Is the Bitcoin bull market over?

Bitcoin price: greed gives way to fear

The Concerns of the Bitcoin investors prior to the entry into a bear market was reflected in the Fear & Greed Index alternative.me low. This Sentiment indicator tries to pour investor sentiment in Numbers. In the calculation, the size of the fluctuations, the trading volume, among other things, the Twitter activity of various Coins, and the development of crypto-search terms in Google Trends. Comes out with a value, attempts to capture investor sentiment between the “extreme fear” (value: 0) and “extreme greed” (value: 100). Tend to be At times “Extreme greed” is often followed by a market correction. Exactly such a run through Bitcoin and co. are up to date.

During the week before the “extreme greed” signed the crypto-market investors after the recent sell-off again more cautious.

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Crypto Fear & Greed Index at 1. March 2021. Source: Alternative.me

This is not the first major profit this year, investors are unsettling. Such a powerful mood of Fear &amp recorded; Greed Index in January.

Crypto Fear & Greed Index in the last 90 days. Source: Alternative.me

The Bitcoin bulls threatened on the brand of 40,000 US dollars, the horns are blunt, investor sentiment slipped suddenly from the greedy in the anxious range.

The bulls buy the Bitcoin Dip?

Of course, the Fear &amp can deliver; Greed Index is only limited information about whether the bears have already taken over the helm. Further, something more tangible metric for the classification of the crypto market, the SOPR (Spent Output Profit Ratio) delivers. This measures the difference in the value of Bitcoin units (Outputs) between the time points at which the last Time you were moved. A bear market is characterized among other things by the fact that on the sale and losses are acceptable. The SOPR is permanently under 1.

At the same time, a value of 1 means that Coins with a “profit” were moved. A typical sign of a bull market is when the SOPR remains long under 1 – the cops “buy the Dip” in the Bitcoin price, because they see long-term positive development.

Bitcoin SOPR in the course of the year. Source: Glassnode Studio

The data for the analysis in-house Glassnode show that the SOPR in the Wake of the Corona-crash slipped in March 2020 abruptly in the basement. During the General investor panic Verlsuste were taken into account. Only in the second half of the year, the SOPR stabilized again in the profitable area.

With the recent crash in Bitcoin Kuzrs under the brand of 50,000 US dollars, the SOPR for Bitcoin fell below 1 for the first Time in almost six months. Of a mass sell-off will not be liable, however, the speech will be: The trip to the negative area in front was only one day.

Big Picture: The characters are on a growth track

In light of the recent developments in the Bitcoin acceptance of all the multi-billion dollar investment from Tech companies like MicroStrategy, Tesla, and Square have the cops still every reason to be chomping at the Hooves. The price of Bitcoin moves still in the corridor, the Stock-to-Flow analysis is modeled.

Stock-to-flow model according to PlanB. Source: Digitalik.net

After the Stock-to-Flow model, making a bullish connection between Bitcoin Halvings and the development of the Bitcoin price would have to BTC blow up this year is the mark of US $ 100,000. Previously S2F as a useful approach for the modeling of the Bitcoin has rate proved to be quite controversial, the model is not, however.