With targeted price action and an accelerated upward movement for most currencies in the wake of the Bitcoin rally, new levels of sentiment and behavior were observed across the market. While all rallies are a sigh of relief, this Bitcoin rally in particular has been significant after the many negative news and sentiments surrounding BTC over the past few months.
After Bitcoin’s weekly gains of nearly 30%, the big question remains, is Bitcoin finally leaving the sandbox? BTC analyst Benjamin Cowen presented optimism about Bitcoin’s alleged exit from the sandbox in a recent video. He said:
“After spending the summer in the sandbox, the price of Bitcoin could finally come out. We need more time to tell, but momentum is with us for now. Whether we leave it now or later, it is more or less a win-win opportunity. “
Bitcoin has been in a sandbox since the May 19 price drop, which has fallen 40-50% after entering the below $ 40,000 zone. The region between $ 30,000 and $ 40,000 that Bitcoin has been stuck in since its fall is the sandbox. The sandbox basically contained a lot of roller coaster price moves that continued to create fear at the lows and FOMO at the highs.
While there have been attempts by the king coin to break out of the sandbox, this counts, because after swinging in the lower zone of the sandbox since June 15, this is the king’s first attempt to break out.
Now there can be two possibilities, on the one hand that Bitcoin falls a little and consolidates more before it rises, and on the other hand that Bitcoin is finally released from the sandbox. According to Cowen, both cases were a win-win situation because if the former happens, more BTC can be bought at a low price, and if the latter happens, another price high could be possible, triggering an alternate season.
That being said, it is noteworthy that Bitcoin’s 30-day MVRV, which is used to identify the gain or loss of short-term holders, showed some worrying signs. These levels are higher than in June after seeing a deep decline. On the flip side, however, these are the highest levels since March 15, after which the price rallied (after a slight decline).
A report highlighting the same thing noted that “this usually suggests that short-term owners have an incentive to take some profits off the table if something terrifies them”.
So by looking at the metrics, it is safe to conclude that the price of Bitcoin, as it exits the sandbox, can temporarily consolidate between the lower and upper sandbox levels. Either way, as Cowen said, it should be a win-win scenario for investors and traders.