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Bitcoin: Stacking sats in your wallet? Expect that in the coming months

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Bitcoin: Stacking sats in your wallet?  Expect that in the coming months

Over the past few months, the crypto market has taken a severe dip, hitting a year low in mid-June. The king of all Bitcoin cryptos, also couldn’t escape the effects of the crash and hit its 2022 low of $17,700 on June 20.

However, since the last negative growth, BTC has taken an uptrend and it has been on a steady trajectory to recover its value; recently crossing the $24,000 mark.

Notably, at the time of writing, BTC was trading slightly lower at $23,958 with a market cap of $458,062,265,258.

What’s going on

In June, BTC hovered near the psychological level of $19,000 for a few weeks and then an uptrend started. Along with the increase in its price, an increase in BTC’s profit supply percentage was noted, with the metric hitting a 3-month high of 62.03% on August 12.

Source: Glassnode

Past data has pointed out that the profit supply percentage never fell below 65% in the past two years until January 2022, when it reached 64%.

Then it jumped for a while and declined to mark its lowest level in 2 years. Interestingly, as the profit supply percentage is inversely related to the total loss supply, the latter marked its 3-month low at 7.123 million.

Source: Glassnode

Along with the percentage supply gains, the Lightning Network, which is an off-chain network that can be used to send or receive Bitcoin, also peaked.

At the time of writing this article, the maximum capacity of the Lightning Network is 4,560 BTC. According to data from Glassnode, a considerable increase has been recorded in total network capacity despite the crypto winter.

Source: Glassnode

The flip side

All of the aforementioned developments indicate that BTC’s performance over the past few months has been better than in the first quarter of 2022.

As always, opinions are diverse in this dynamic crypto industry. Peter Schiff, Chairman of SchiffGold and CEO of Euro Pacific Capital, recently predicted that the forced sale could push the price of Bitcoin further down to $10,000.

Furthermore, he stated that not only Bitcoin but also several other crypto companies will go bankrupt in the near future.

Conclusion

Looking at the BTC chart, the world’s largest crypto showed support and resistance at $19,000 and $22,200, respectively.

However, over the past few weeks, BTC managed to turn resistance into its new support and rose further to break through the $24,000 mark, raising hopes for better days ahead.

Source: Trading View

The Bollinger Bands suggest that after being in a very volatile zone, the price of BTC may soon experience a crisis, indicating a breakout in either direction.

Although over the past few months, BTC has passed several milestones, the same trend in the future cannot be guaranteed. As Peter Schiff mentioned, the data presented by the CMF suggests that the bears had a slight advantage in the market.

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