Any chance of undercutting Bitcoin?

$40,000 has been seen as strong support for bitcoin over the past month and the seven-day low sits at $40,600. Well, the interesting question here is will the rally to the current $42,831 end any time soon?

Bitcoin price chart | Source: Trade View

BTC appears to be stabilizing thanks to recent options activity, according to an analysis by Genesis Global Trading. Basically, it points to the possibility of a price increase. In addition, analysts note that the difference between the “implied volatility of bullish and bearish bets” is now close to zero, revealing demand for more calls than puts, which is an indicator of price appreciation.

In particular, the Bitcoin Volatility Index (BVIN), which measures Bitcoin’s implied volatility, has shown a downward trend on the chart.

Bull Market Ahead?

Glassnode recently showed in its research that 40% of BTC trading volume is currently profitable.

“40% of BTC trading volume is now profitable. Most recently, this level was reached in March 2020 and July 2021.”

Bloomberg Intelligence’s Mike McGlone also notes that growing demand and adoption coupled with a drop in supply could spark a full swing.

Relate to each other

However, will the hedging utility drive demand for Bitcoin in the future like it did in 2021? That’s still a big question. On the other hand, it seems like an investment product that is more correlated with the stock market than ever before. The International Monetary Fund (IMF) also pointed to Bitcoin’s post-Covid-19 performance, showing a huge correlation with stocks.

Miracle Mile Advisors’ Anderson Lafontant believes continued correlation will reduce Bitcoin’s appeal as a hedge. Despite this, many industry investors are betting on an extended rally. It is worth noting that BTC balances on exchanges continue to decrease, which is still a positive indicator of an uptrend.

However, some are expectation lower lows for btc.

“Many of my colleagues ask me if I’m actively buying Bitcoin and Tesla right now, and the short answer is ‘NO’. I think the next 6 months could see both BTC and Tesla decline, so I will look to buy more at cheaper prices.”

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page