Bitcoin could move towards $100,000 in the next year after its “healthy pullback” yesterday. The market psychology is presently in the stage of “belief” according to Stacks Funds. It will take time to move on from the “belief” stage to the “euphoria” stage of this cycle.
Stack Funds, fund provider, Crypto index, has termed yesterday’s pullback of Bitcoin as the “healthy correction” which was needed by Bitcoin before it continues on its journey of upward trajectory.
After posting consecutive gains of seven weeks it went through $19,000 early this week. The firm said that the crypto was at overbought levels from October, which accelerated further the need for this correction.
Bitcoin Data From Glassnode
The firm has examined metrics surrounding the market psychology and it believes that market participants currently are in a “belief stage” which will gradually flow into the “euphoria” stage.
For supporting their statements, the fund cited Glassnode’s data regarding Bitcoin’s net profit/loss, termed as NUPL. This compares the current price of BTC with when every coin moved on-chain last.
Historically, when the total number of persons in profit is above 95%. It is seen as a market tops good indicator.
The “belief” state which Bitcoin in this month has been passing, held over a year during the bull market of 2017. It saw a price rise of BTC from $850-$20000.It increased by around 2,250%.
Extrapolating the pattern of the bull market 2017 to Bitcoin’s current state. the fund commented that one-quarter of this price increase will help Bitcoin hit over $86,000 in the next year, the period in which we will enter the stage of “Euphoria” of this cycle.
Opinion Of Other Analysts
Other analysts think that it is like a blip on a road. Mati Greenspan, Founder, Quantum Economics, speculated that this correction is already bottoming out. He also added that a pullback of 17% is kind of tame for the current stage of this cycle.
Lark Davis, Crypto personality pointed out that the support levels didn’t require long to stop this correction at $16,500. He asked whether this is the dip or if we are venturing lower?
“Mayne of Tather”, a Crypto trader addressed his over 70,000 followers on Twitter that this pullback will create some beneficial buy-in opportunities regarding altcoins. Another trader called “teklordz” believed that this retracement was essential. The daily RSI has been receding to the mid-level territory. He believes that the upcoming pump would be even stronger than this one.
Data from Santiment, an analytics platform, indicated the rampant profit-taking amongst Bitcoin holders, with both long-term and short-term Bitcoin holders having profits of 63% and 15% respectively.