The crypto market has finally shpowing signs of recovery after a disappointing week. Major altcoins tend to flip the bearish divergence quickly and rebound.
Bitcoin Price Bulls are Here to Stay
One on-chain metric, according to popular crypto analyst Benjamin Cowen, indicates that Bitcoin’s bull trend is likely to continue.
Cowen explores BTC’s Realized Marketcap in a new YouTube video. To calculate the Thermocap Ratio, multiply the cost base of Bitcoin by the supply, and the Thermocap is the sum of daily Bitcoin miner earnings in US dollars.
The ratio has reached fresh all-time highs in previous BTC bull market cycles. According to the analyst, this hasn’t happened yet in the current cycle.
He says that this is what you get if you divide the Realized Marketcap of Bitcoin by the Thermocap metric. One of the intriguing things about this market cycle is that we have yet to see a greater high on this indicator.
“When looking at this, you know you have to wonder: Is there more coming? I mean obviously, we’ve spoken about lengthening cycles for a long time, but even if lengthening cycles play out, I… imagine it won’t likely be obvious until either the end of this year or sometime in 2023.”
Under present market conditions, Bitcoin is still “very, very fragile,” according to Cowen, and will remain so unless it can hold certain key milestones as support.
With the Bitcoin price reaching a low of $38,562 before the buyers of the dip broke back above the $39,000 support. Meanwhile, unless the king coin recaptures $40,000 in the near term, the bears could have the upper hand over the bulls, and BTC/USD may plunge significantly lower.
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Source: https://coinpedia.org/bitcoin/bitcoin-btc-bull-trend-will-continue-hints-on-chain-metric/