3 reasons why Bitcoin traders anticipate BTC price to briefly sweep the $27.5K level
2 min read
After a spectacular first half of 2023, the price of Bitcoin (
Bitcoin network fundamentals have floundered
The Capriole Investments report cited earlier emphasizes that “price is only half the picture.” Fundamental factors also come into play. Among those most worth considering might be metrics that pertain to questions such as:
- What’s happening with on-chain flows?
- How are investors allocating capital?
- How does overall market sentiment and the macro environment impact Bitcoin?
- Is network security growing?
The Capriole Bitcoin Macro Index is an aggregate measurement of 40 fundamental Bitcoin variables, including on-chain, macroeconomic and equity market metrics. All factors have been combined into a single machine learning model.
The report concludes:
“The Macro Index today remains in a period of relative value (below zero), suggesting decent long-term value for multi-year horizon investors. However, the Index just re-entered contraction. On-chain and macro fundamentals have started to trend down following a 7-week period of recovery which started at $26K in early June.”
Bitcoin’s long-term bull thesis is still in play
Despite these near-term bearish developments, there’s little reason to be concerned long-term. The next halving event is less than a year away, and positive news keeps flowing in.
Perhaps most importantly of all, the hash rate has risen by 50% in the last six months alone. This suggests that the Bitcoin network is stronger than ever and continuing to grow at a lightning-fast pace.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
