Bitcoin suddenly rises above $ 55,000 and market capitalization exceeds $ 1 trillion again – what’s next?

Bitcoin price suddenly shot above $ 55,000 about an hour ago, hitting its highest level since May 12 of $ 55,172.

Bitcoin’s market capitalization has passed the $ 1 trillion mark again after first hitting this milestone on February 19.

However, in the past few weeks, the cryptocurrency market has not been able to sustain a certain trend for too long, particularly Bitcoin. So when it comes to profitability, it is important to know who is profitable for how long.

What You Should Know About Profitability

During the week, profits increased across the market and losses decreased at the same time. Currently, Bitcoin’s price action supports strong bullish sentiment. As a result, real interest jumped to a 45-day high, being just $ 4 million below the $ 1 billion mark at press time.

On the flip side, real losses fell to $ 175 million, much less than $ 1.1 billion in mid-September.

Win and loss really from Bitcoin | The source: Glass knot

In addition, the trading volume of the market also increased. Overall, the volume is as high as it was in April during Bitcoin’s ATH (between $ 13.6 billion and $ 16.8 billion).

In particular, the dominance rate of transactions of $ 10 million or more in size has also increased. This is a sign that BTC is getting greater interest from high net worth investors, institutions, etc.

Total Bitcoin Transfer Volume | The source: Glass knot

Such developments may have triggered profitability for short term (STH) owners. According to the graph, STH-SOPR entered profitability before dropping back to 1.

Bitcoin STH-SOPR | Source: Glassnode

This implies a great demand for Bitcoin, that is, the coins issued are strongly absorbed.

What about the long-term bitcoin hodler?

Conversely, long-term (LTH) holders fall to a relatively lower profitable position and move below the 2. These levels are usually seen in the early stages of a bull run and when price continues to move in a positive direction. , it could spike again.

Bitcoin LTH–SOPR | The source: Glass knot

At the time of writing, Bitcoin is hovering around the $ 55,000 mark. In fact, this could be the moment the market has been waiting for. In the weekly timeframe, BTC is up over 30%.

As the accumulation continues and the total profitable supply hits a monthly high of 87%, this is expected to reverse the propensity to sell.

Also, as the low reserve risk attracts investors, the market is sure to see a downtrend in sales and possibly buy again.

Bitcoin Reserve Risks | The source: Glass knot

Stochastic RSI forms “extremely bullish crossover”

In Update With the latest information on Bitcoin’s Relative Strength Index (RSI), renowned analyst TechDev has highlighted key similarities between that year and the 2013 BTC bull run.

As Bitcoin rose higher, the RSI rose rapidly too and is now cooling off from the “overbought” zone, suggesting a modest, temporary pullback.

However, if you zoom out of the chart, the stochastic RSI is about to repeat moves from 2013 before Bitcoin hit an ATH of around $ 1,300. For comparison: BTC started at $ 13 this year.

The stochastic RSI measures the relative strength and weakness of the RSI indicator itself.

“Bitcoin RSI formed the second bullish monthly crossover between the 20 and 80 lines in this cycle. An extremely bullish crossover. September 2021 and May 2020. Such crossings have only happened twice in history: September 2013 and May 2012. The prices rose after all three previous crossovers. “

diagram stochastic RSI and price BTC / USD | Source: TechDev

Even so, Bitcoin bulls may have to wait a little longer to push the price higher.

According to historical BTC price data, analyst Rekt Capital called The new ATH takes place in December, not in “bullish October”.

In addition, the price could even fall back to a level of just over $ 50,000 in November.

However, such a conservative prediction does not contradict other popular models, in particular the “worst-case” closing sequence of the stock-to-flow creator PlanB.

The projections are for $ 63,000 for October, $ 98,000 for November, and at least $ 135,000 by the end of December.

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