Bitcoin price (BTC) collapses: Bears flex their muscles
After a prolonged period of abstinence, the bears are off again and are once again defying the recently rebellious Bitcoin bulls. The market update.
The Bitcoin Rally is currently faltering after the dizzying heights of recent weeks. At the time by Bitcoin Compass of going to press, the largest crypto currency is slipping to 18,119 US dollars, with a discount of around 700 US dollars and a minus of 4 per cent compared to the previous day.
Bitcoin exchange rate in the weekly chart
As a result of profit-taking, market capitalisation has shrunk by around US$30 billion to US$333 billion in the last 48 hours alone. After the rapid increase in market capitalisation in recent weeks, the total value of all Bitcoin is thus back to the level at the end of November.
The exchange of blows between bears and bulls has currently unloaded at the $19,000 mark. At $19,832, Bitcoin narrowly missed the jump to the next thousand mark on 1 December – a final tour de force for BTC bulls. Since then, the bears have been reporting back from hibernation early and gradually digging up the ground again.
Bitcoin in the bull market?
Despite the consolidation, Glassnode’s Blockchain analysts continue to place Bitcoin in the bull market based on reserve risk metrics:
Bitcoin’s reserve risk remains low, indicating that the bull market has only just begun. Reserve risk is used to assess the confidence of long-term holders in relation to the BTC price; when confidence is high and the price is low, reserve risk is low and there is an attractive risk/return ratio for investments.
Investor confidence in the No. 1 crypto currency is therefore unbroken. As the chart below shows, the Reserve Risk is only slightly above the green zone. According to Glassnode, the fact that the ratio is so low indicates „an attractive risk/return ratio for an investment in BTC at this price“. Thus, the current setbacks are only a snapshot before Bitcoin resumes its upward trend.