Bitcoin is “like a recharged spring”
The price of Bitcoin (BTC) is lateralizing near its historical maximum (ATH) of $ 123,000 for nine days. However, there are indicators that show that the asset is far from exhaustion and is “like a recharged spring,” ready to resume the bullish path.
This is explained by Bitcoin Vector analysts, an analysis firm ON-CHAIN Swissblock, who argue that Bitcoin is “compressing, but is not breaking.” That is to say, is accumulating energy to climb at levels never seen before.
“The impulse has cooled, but the structure and the foundations are still solid. This is not a top. It is a spiral system with under support, ”they said.
To base your thesis, they are based on the graph that combines two important indicators: the change in the structure of the price (Structure Shiftin English) and the impulse of the price (Price momentum).
The change indicator in the price structure is maintained in the upward zone (Bullish), while the price impulse reflects a loss of strength. Although the impulse “is fading”, which could exert bassist pressure on the price, for now There is no break down or escape signs. “Without break down. Without upward rupture. Just waiting for the ignition,” they said.
Another indicators that highlights the solidity of the asset is the Bitcoin Fundamentals Index (BFI), which combines network growth with market liquidity.
Currently, this indicator (blue line) is located in 67, a level considered strong. On the one hand, the growth of the network (red line), which measures the activity and adoption of the ecosystem, is 79.98.
On the other hand, liquidity, the ease with which you can buy or sell without moving the price too much, reached 64.27. Both factors support the uprising structure of the pricewhich remains compressed in the area of 117,000 and $ 119,000.
Finally, analysts stressed: “This is not exhaustion. This is a loaded spring. Once the impulse is aligned, the break continues. Until then: BTC is stabilized, Ethher (Eth) and Altcoins lead.”
It is important to note that the movements referred to by Bitcoin Vector analysts already begin to be reflected in the market. As Cryptonotics reported, the rebound in the price of ETH, the native currency of Ethereum, and other cryptocurrencies of lower capitalization suggests a capital rotation from BTC to those assets.
