In the cryptocurrency market, eyes are on a future steady rise. In this period when everyone has such an expectation from the crypto money market, Blockware chief analyst Will Clemente also commented on a bull scenario for Bitcoin.
Blockware principal analyst Will Clemente posted a chart for Bitcoin on Twitter and shared some of his comments with his followers.
The following tweet is included in the tweet:
"Bitcoin price currently finding a delicate equilibrium between Short term holder cost basis at $47,000 and HODLer implied price at $40,000
The bullish scenario would be a push above STH cost basis, while a bearish cross would be a sign of potential capitulation to come."
The term cost basis is used to describe investors' average entry price into an asset. The short-term owner cost basis shows that the average inflow of short-term Bitcoin holders is now $47,000.
Another metric, HODLs implied price, can be defined as a metric that reflects the behavior of owners by measuring the number of liquidations that cause a metric to rise. This metric declines if cryptocurrencies remain dormant.
If HODLer's implied price metric exceeds the short-term owner cost basis, the market should expect an increase in liquidation volume putting tremendous pressure on price.
Cryptocurrency markets quickly recovered from the bearish shock in the first hours of the week, and a recovery was seen in the market with the purchases coming in at the bottom levels during the US trading hours. After the total market capitalization went above $1.85 trillion towards the close yesterday, it remained mostly at these levels today. The average trading volume for the last 24 hours is around 90 billion dollars. 93 of the top 100 cryptocurrencies are right up in the evening. Yesterday, the opposite was the case.