While the price of Bitcoin (BTC) remained over $56,000 on Thursday, December 2, it has been trading in a state of limbo, having made its seventh unsuccessful attempt to break the $59,000-$60,000 level on December 1.
Cryptocurrency traders are unsure of the direction Bitcoin will go, but recent data on Bitcoin’s Average Spent Output Lifespan (ASOL) as of December 1, suggests confidence may be growing, according to blockchain analytics and intelligence firm Glassnode.
A decline in ASOL indicates that investor confidence is increasing and fewer coins are being spent, whilst a rise in ASOL indicates that gains are being taken during corrections.
“Bitcoin Average Spent Output Lifespan has returned to a relatively low level of 35-days after peaking in late Oct. ASOL trends higher as older coins spend, taking profits. During corrections, declining ASOL is a signal investor confidence is improving, and fewer coins are spent.” Glassnode tweeted.
Indeed, only a few weeks after peaking in late October, the Bitcoin entity-adjusted ASOL (7 day EMA) has fallen to a remarkably low level of 35 days, indicating that investors with old coins taking profits are on a downwards trend.
Opinions of cryptocurrency analysts
Regarding the professional view on the path of the flagship digital asset’s pseudonymous crypto analyst Plan B, believes we are still on track to reach $100,000, he reveals:
“Stock-to-Flow model on track since March 2019, in 1 standard deviation band (dark blue), aiming for $100K.”
Notably, the renowned trading analyst’s floor model missed its first prediction in November after accurately forecasting the closing price in August, September, and October. He added the following to this note:
“No model is perfect, but this is a big miss and the first in 10y! Outlier/black swan? I will give Floor model 1 more month. S2F model unaffected and on track to $100K.”
On the other side, notable cryptocurrency trader Michael van de Poppe recently discussed a possible scenario for Bitcoin in the event that $56,000 is lost.
Poppe said that a possible short-term rebound around $52,000 may occur, but emphasized the zone around $40,000 as:
“Crucial region to stay above to avoid a bear market as this is the recent high low on the weekly time frame”.
Currently, Bitcoin is trading at $56,326 down 1.68% in the last 24 hours and 3.35% over the previous seven days with a market cap of $1.06 trillion, according to CoinMarketCap statistics.
Overall, it seems that the decrease in Bitcoin’s price and the general sluggishness of the cryptocurrency market may be attributable to the concern surrounding the spread of the new Omicron variant of covid-19.
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