Why Bitcoin [BTC] investors may need to consider strengthening the bag
- BTC may defy predictions of a prolonged correction in Q2.
- Holders have the opportunity to add to their portfolios since the transition to the bull region is still early.
That Bitcoin [BTC] was able to beat predictions of further declines into the new year was evidence of the coin’s willingness to change the market playbook.
The 70% increase in price also earned it the plaque as the best-performing asset class relative to the sometimes correlated S&P 500 Index (SPX).
Read Bitcoins [BTC] Price prediction 2023-2024
But as Q2 begins, the conversations that preceded Q1’s performance have begun to unfold again. CryptoQuant author and chain analyst Axel Adler Jr., meant that the current state of BTC should act as a positive sign for investors.
Less risk, more rewards
In his analysis, published on April 2, Adler focused on the impact the BTC Risk Index has had since November 2022. The risk index evaluates the threats that investors may face using the delta and the market capitalization. As confirmed by the analyst, the metric had fallen to 1.78 at press time, from a peak of 3.34 in November.
A decline in the index acts as a cue for investors to accumulate and expand their portfolios. And usually, when the index goes up, the BTC price goes down. As the index rises, the coin’s value increases. Since it has maintained a downtrend, it also means that the opportunity may still be available.
However, Bitcoin’s trajectory may end in one bearish divergence soon, according to StockMoney Lizards, the Twitter-popular crypto trader. But he also admitted that the correction was necessary before the coin appealed $30,000 claim.
as in February, we are now seeing a bearish divergence. Correction still very likely before we approach 30k. pic.twitter.com/atXM2aiBqa
— Stockmoney Lizards (@StockmoneyL) 2 April 2023
To break the yoke of torture
On the other end, another CryptoQuant analyst who goes by the name “onchained”, weighed in on the case. The analyst dwelt on the short-term owners’ realized price (STH RP) and the long-term owners’ realized price (LTH RP).
Realistic or not, here it is BTC’s market value in ETH’s terms
LTH RP indicates the buying and selling pattern of long-term investors. Conversely, STH RP tracks the average price that has moved over the last 1155 days.
Furthermore, he pointed out that the realized price representing the average cost of all circulating Bitcoin dropped to $19,722 over the past week.
However, LTH RP was $21,334 compared to STH surpassing it at $21,742. Interestingly, this was one of the conversations of one recent Galaxy Research analysis. As the full-service market research agency onchained noted,
“The fact that the short holder’s realized price has exceeded the long holder’s realized price is significant because it has only happened three times before, and each time it signaled the end of a bear market”
