Is Bitcoin [BTC] offer a short-term opportunity to LTH?
- Bitcoin transactions in the millions surged over the weekend and could offer a buying opportunity.
- Analysts say a $200 trillion market cap is possible, but the positive sentiment was non-existent.
A February 13 market insight from Santiment thought so Bitcoin [BTC] could present investors to buy at a discount. According to the on-chain platform, a short-term opportunity could be lurking, especially as BTC fell to $21,600 over the weekend.
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These whales may have opened the holes
On the other hand, whales responded to the decline as the number of $1 million transactions reached the highest since November 2022. As of February 11, there were 479 transactions within the range, but had fallen to 183 at press time.
🐳 #Bitcoin fell to $21.6k on Sunday, and whale addresses responded by trading at the fastest rate in three months. Read our latest community insight, focusing on why $BTC can offer a short-term #buytips possibility. 🤑 pic.twitter.com/RXL34z8QIB
— Santiment (@santimentfeed) 13 February 2023
Although the move can be considered significant, the BTC price reaction signaled a possible increase in major selling. This inference was a result of the market value to realized value (MVRV) ratio.
The calculation serves as a measure for evaluating an asset’s value and a projection of the investor’s path towards profitability. From the chart above, it can be seen that the two-year MVRV rate was 33.83%.
Compared to the BTC trend over the first 44 days of the year, this could be an opportunity to accumulate for short-term gains.
Before the weekend’s price decline, traders who stayed true to their positive BTC enthusiasm plunged into losses.
In accordance Glass nodelong liquidations in the derivatives market hit a three-month high of $5.30 million on February 9.
Since another drop in value followed the liquidations, it meant Bitcoin’s decision to remain in the red zone or consolidate.
Source: Glassnode
Glory comes in the long run
In the long term, several analysts seemed uninterested in changing their bullish outlook. Adam Back mentioned that the next two halvings could bring BTC to a market cap of $200 trillion.
Although it may seem like an overstatement, the famous cryptographer and hashcash inventor considered the 10-year trend to arrive at his projection.
early this year I became curious about the claim “bitcoin 2x per year on average”. it checks: the decade Jan 2013 – Dec 2022 #bitcoin went up 2,036x/year (1200x in a decade). if it continues we will cross $10mil/BTC and $200 tril market cap by the end of the next 2 halvings, roughly 9 years. pic.twitter.com/mqmO2SRdAv
— Adam Back (@adam3us) 12 February 2023
Other than the last decade’s trend, Back also evaluated possible hyperinflation and increased adoption as reasons for his opinion. He tweeted,
“Given volatility, I think Bitcoin could overshoot wildly and hit one of those $100-300 trillion market caps, correct and then regain more even adoption over time.”
How many are 1,10,100 BTCs worth today?
Despite aura around Bitcoin remained at an extremely low level. According to Santiment, the positive sentiment was at 1926 – a point it failed to hit since August 2022.
Source: Sentiment
This explains that investors were not necessarily optimistic about the coin price despite the possibility. At the time of writing, BTC’s price was still trading around $21,600.
