Despite the decline in the Bitcoin (BTC) market, there are still bullish indicators to hold onto. Creator of Bitcoin stock-to-flow (S2F) model Plan Bargues that one of them is Bitcoin’s 200-week moving average (WMA).
#bitcoins 200 week moving average still increasing. Ignore volatility, focus on the trend. pic.twitter.com/6nruFNj9ne
— PlanB (@100trillionUSD) February 21, 2022
Alongside the market players at Bloomberg, Plan B, bitcoin He is one of the few market watchers with bullish prospects in the market. He announced this in a recent tweet, saying that market participants should ignore volatility and focus on the trend.
According to the analyst’s chart, the 200 WMA is rising steadily and is currently located at just under $20,000. Historically, Bitcoin price has spent very little time below the 200 WMA. Also, the indicator is useful for making price predictions for Bitcoin.
200 WMABitcoin is bullish for long-term investment. Also, according to a comment from LookIntoBitcoin, he points out that Bitcoin currently offers a good buying opportunity.
The popular analyst had previously pointed to Bitcoin’s weekly Relative Strength Index (RSI) as another “incredibly bullish” indicator. Plan B also continues to support the S2F model, which predicts a price of $100,000 for Bitcoin.
Short-Term Investors Are Scared
While some market experts are confident that Bitcoin will inevitably rise, the market sentiment is currently extremely bearish. An obvious indicator of this is the Short-Term “Bitcoin Origination Adjusted Output Profit Ratio (SOPR)”. This indicator, which reveals the ratio of short-term spent outputs in profit, glassnodeIt shows a downward trend according to data from .
Analysis of Glassnode, SOPRIt indicates that . is currently trading below one value. SOPR value below 1; It means that the average selling price of Bitcoins used that day is lower than the average purchase price. Glassnode said this shows:
“STH (short-term investor) sells on a cost basis. They’re just willing to get their money back… So what we’re seeing is that short-term investors are frightened by the current price action.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.