Bitcoin is flexing its muscles again

How melted away, so won: After a turbulent weekend, green candles are being printed again on the crypto market. Will the cops take control again?

The crypto market recovered quickly from the massive sales over the weekend. The total market capitalization increased by 8.1 percentage points on a daily basis and rose again just above the mark of 2 trillion US dollars. The Bitcoin course starts the new week with a daily plus of 6.7 percent, also with good omens. In today’s, still young trading history alone, the crypto reserve currency has already made up 5,000 US dollars. At press time, the BTC price is trading at $ 52,717.

The altcoins are also making up for their losses. With the exception of Dogecoin, the entire top ten is clearly turning into positive territory. With Ethereum (ETH), Binance Coin (BNB), XRP, Polkadot (DOT) and Uniswap (UNI), five coins recorded price increases in the double-digit percentage range. But the developments of Cardano (ADA) and Litecoin (LTC) can also be seen with 9.6 and 8.7 percent.

While subsequent purchases ensure price gains across the board, entrepreneur and Bitcoin entrepreneur Anthony Pompliano lets the mini-crash reminisce and gives an assessment of the medium-term market performance.

Long liquidations trigger sales

The trigger for the crash was therefore unequal distributions on the futures markets. According to Pompliano, the weekend saw one of the largest “long liquidations in history”. Overall, long positions for 1.8 billion have been liquidated, more than a year ago when the Bitcoin price collapsed by 50 percent on “Black Thursday”. The drop in prices caused by the long squeeze triggered a wave of panic selling that pushed the BTC price back below $ 50,000 at a record pace.

However, according to Pompliano, the spent output profit ratio (SOPR) indicates that “the bottom of this correction has been reached”. The SOPR indicator measures profits and losses based on entry at a certain price level. As can be seen in the graph below, the metric has approached a value of 1 during the sell-off, “which indicates that the participants are neither in profit nor in loss”. However, this is a good sign because:

Historically, every dive below 1 has been a good buying opportunity. In the January correction, the SOPR was reset to just above 1, and in the February correction, there was a full pullback below 1. Currently the SOPR is approaching the full pullback mark, meaning that the price is either the bottom of the current one Has reached or is about to correct it.

Bitcoin correction already overcome?

The Bitcoin course receives tailwind from the miners. If the crypto miners continued to apply pressure to sell until April, Glassnode’s “Miner Net Position Change” indicates that they are accumulating their stocks again. On the one hand, this shows that miners are lurking for higher prices. In addition, the Hodl trend shows that they can cover their operating costs without having to throw large amounts of Bitcoin on the market.

The superordinate there is also a rapid network growth that throws a bullish spotlight on the performance of the coming months. Over 50,000 new entities are added to the blockchain on average every day. A good sign: the Bitcoin price will eventually rise with his adoption.

In view of these developments, Pompliano is optimistic about the coming weeks. Bitcoin has gradually reached the bottom of the correction. Now it is only a matter of waiting until “profit-taking is reset and there is a general shift in the coins from weak to strong hands”. A time frame could not be foreseen. But “when this period of consolidation is over, there will be plenty of room for the price to go”.