What are the charts saying?
It feels like June 2021 all over again. After the hype created by reaching a new all-time high, as people are expecting for another leg run-up, that parabolic ride to the top, Bitcoin exactly does the opposite: went down as low as $29k followed by months-long of boring accumulation period. Thus, making people uneasy, left struggling back and forth between the hope of recovery and acceptance of losses.
And now, we’re back to that same feeling again. Every time Bitcoin seems to go up, making our hopes back up again, only to plunge down the hole and leave us again saying ‘oh no, not again, please’.
Earlier today, Bitcoin went down to $42k making investors in extreme fear, more fear felt than with previous weeks.
But what does the on-chain data says?
Let’s look at NUPL.
We are currently under the 0.5 level but still optimistic. If we can’t get back above the green level, we might be in another long accumulation period similar back in May-Aug 2021.
But just to keep us hoping, NVT Signal is showing signs of a trend reversal. Perhaps, if we do go through an extended accumulation period, hopefully not that long.
What are your thoughts? Comment below. 🙂
DISCLAIMER: THIS IS NOT FINANCIAL ADVICE.
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