The Bitcoin Days Destroyed (BDD) technical metric has revealed that there is a little bit more for the Bitcoin price to achieve in this currency cycle, as long as it continues to enjoy the crowd sentiment.
Earlier today, Hans Hauge, a Senior Qualitative Researcher at cryptocurrency research fund Ikigai, published a post on Twitter in which he elaborated on the crowd sentiment and how it could affect the price of Bitcoin going forward. In his post, he likened the current situation to early 2017, when Bitcoin began its last significant bull run.
In summary, Hauge stated that the top of any Bitcoin bubble is usually identified with a dark red cluster of Adjusted Binary BDD. He added, “Until that happens, we’re not at the top. Public opinion is key here because that red cluster is caused by the assumption of the crowd and is self-fulfilling (reflexivity).”
For the sake of clarity, BDD is the amount of time required for a specific amount of Bitcoin to move. Per the analyst, there is a higher tendency for higher prices to coincide with coins that move more often. However, it would seem that Bitcoins aren’t so mobile, and as such, its price could still go even higher.
As expected, this will actually play well into the hands of Bitcoin trading experts and even miners as well. Since it seems that the price could still go even higher, activity levels could increase, with many looking to cash in as many coins in anticipation of the price hike.
At press time, Bitcoin is trading at $10,139, just a percent higher on the day. The pattern of the asset’s price movement has led several to worry, as they believe that the momentum of its price surge seems to have dropped.
To skeptics, it is a sign of an oncoming downturn. Late last week, readings from the c showed that several investors are beginning to doubt the long term future of the asset. For instance, on August 14, the Bitcoin-only Index, which shows the general sentiment of investors on a scale of 1 to 100, hit a score of 11; its lowest level since December 2018, when Bitcoin traded for just a little over $3,000.
The statistics paled in comparison to those read about three months ago. Back in May, when the current bull run began, the Index showed a 95 reading, revealing that investors were significantly more optimistic about it going forward.
Historic data revealed that the tipping point from extreme optimism to anxiety could be traced back to July 10, when sentient about the asset dropped from 84 to 33 in less than two days. Within that same time frame, Bitcoin had dropped from $13,000 to about $11,500, and it seems to have continued struggling since then.
For now, however, we can still hope that the asset rises and hits its potential bull run roof. If more people show an interest and start to buy cryptocurrency, and as more companies make their foray into the crypto field, then it should get enough juice to stay profitable.