Stack Funds Calls BTC Correction a ‘Healthy Pullback’
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Crypto index fund provider, Stack Funds has already gone ahead and referred to the recent pullback in the Bitcoin market as a ‘healthy’ correction and claimed that it was needed before the leading cryptocurrency could go back to its upward trend. Earlier this week, when Bitcoin broke through the $19,000 threshold, bullish sentiments had reached their highest, having had consecutive gains for seven weeks before this. However, Stack Funds highlighted that there had been a need for a correction in Bitcoin because the crypto had been overbought since October. In order to justify this claim, the company decided to take a closer look at the crypto market’s psychology, along with other metrics for Bitcoin.
The index fund provider said that market participants were currently in the ‘belief’ stage. However, Stack Funds went on to say that it wouldn’t take long for this sentiment to move into the ‘euphoria’ stage in due time. In order to support the claims it had made, Stack Funds cited the data provided by renowned crypto data provider, Glassnode. The crypto index fund provider made a reference to the net unrealized profit or loss that had been shared by Glassnode. This data compares the price of one Bitcoin with the price of every coin when it was moved last on the on-chain.
Historically speaking, it is possible to see market tops reliably the moment when 95% of the people have made a profit. Glassnode breaks down the various states of the market, which allows it to break down overarching macrocycles of the first cryptocurrency in the world. The current ‘belief’ state that’s held by the Bitcoin market is one where it just moved in this month. Back in 2017, when Bitcoin experienced its greatest bull market, it had held this particular state for almost a year.
This market saw a massive increase in Bitcoin by nearly 2250%, where it went from a price of $850 to hit a whopping $20,000. When comparing the data of the Bitcoin bull market back in 2017 to the current market for the crypto, the fund said that even a quarter of the price increase that had been witnessed that year would end up smashing the Bitcoin price past the $86,000 mark in the next year. This is when the market will enter its ‘euphoria’ stage. A number of market analysts have also been speculating about the Bitcoin market, especially given its current state.
There have bene a lot of debates about this year’s bull-run and its 2017 bull-run. They are convinced that this market correction is already done. Founder of Quantum Economics, Mati Greenspan went as far as referring to the 17% pullback in the Bitcoin market as a tame one, given the stage of the cycle of the cryptocurrency’s market. A prominent crypto personality, Lark Davis highlighted that it hadn’t taken long for the correction to stop at its current price, which has now reached $16,500. As such, he said that it couldn’t be predicted if it will retain this price or go lower.
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