Just in case you haven’t checked your virtual asset account yet, the BTC price has retraced significantly. After a run that saw BTC cross the $19,000 mark, BTC has retraced below the $18,000 mark and is now ranging in the mid $17,270’s.
While some see it as a bad thing and a confirmation that the bullish sentiment was just a setup for some whales to sell, others see it as a discount for a buy. Crypto index provider, Stack Funds see the pull back as “healthy.” According to the firm, the market has hit smack into reality and is now correcting from previously overbought levels since October.
The firm also examined metrics around market psychology and said that market participants were currently in the ‘belief’ stage of the cycle which will eventually flow into an euphoria. Stack Funds backed uo their claim by citing Glassnode’s data on BTC’S net unrealized profit/loss often referred to as NUPL. NUPL compares BTC current price with when each coin last moved on chain.
Historically, when the number of people in profit has surged above 95%, the fund explained it has been a good indicator of market tops. According to the data provided, the point of belief has been surpassed this month by BTC. The “belief” level was last surpassed for a protracted period back in 2017 when a long bull run saw price move from $850 to almost $20,000.
The fund suggested that if the 2020 run made even a quarter of such gains, the price would rise from its current price to almost $86,000 by next year. Other analysts believe that the pull back is nothing more than a small blip on the road, with Quantum Economics founder Mati Greenspan speculating that the correction may have already bottomed out, adding;
“A 17% pullback is rather tame for this stage of the cycle.”
A crypto account on Twitter appeared to second Mati’s sentiments by referring to the current pullback as “essential.”
