An Uptrend Still Possible on Bitcoin Despite the Currency’s Doubtful Performance in April
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- short term holder cost basis
- HODLer implicit value
The uptrend that everyone has been anticipating in the cryptocurrency market may actually have started following the conditions described by Blockware Lead Analyst Will Clemente. met,
short term holder cost basis
The term cost basis is often used to describe investors’ average entry price in an asset. The short-term holder cost basis shows that the average entry for short-term bitcoin holders is currently at $47,000.
Bitcoin price is currently finding a delicate balance between the short-term holder cost basis at $47,000 and the HODLer implied value at $40,000.
The bullish scenario would be a push on the STH cost basis, while a bearish cross would be a sign of a possible capitulation coming. pic.twitter.com/dud9aDVlY1
— Will Clemente (@WClementeIII) April 25, 2022
Whenever the short-term cost basis crosses the HODLer Implied Price, investors receive either bullish or bearish signals depending on the direction of the cross. In the present case, if bitcoin continues to decline further, the market is likely to go deeper as selling pressure from short-term traders mounts.
HODLer implicit value
The second metric used by Blockware analysts is HODLer implicit value, which is essentially the actual value of an asset divided by its livelihood, which is a metric that reflects the behavior of holders by measuring the number of liquidations that measure the growth of a metric. causes. If coins remain inactive, the metric declines.
If the HODLer implied price metric crosses the short-term holder cost basis, the market should expect an increase in liquidation volume, which creates huge pressure on the price. If the STH HODLer moves away from the implied price, the market remains more stable.
While bitcoin’s move above $47,000 could turn out to be an extremely bullish event for the cryptocurrency market, we can still see heavy pressure on the price as some traders may decide to break out of their positions even after a massive 20% drop. Huh.
At press time, bitcoin was trading at $40,456, dropping to $38,111, causing extreme fear in the market.