Cryptocurrency setback after big gains

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The market value of digital currencies surged during these trading moments today, Thursday, to past levels of $ 2.33 trillion.

 The market value of digital currencies has grown by over $ 180 billion in the past few hours, from $ 2.15 trillion to current levels.

 As more than 95% of digital currencies have traded on the impact of the surge of the largest digital currency Bitcoin, it looks like fears of a setback may arise. According to the Glasnod Index, known as the Entity Percentage Index, cryptocurrencies could be on the verge of taking profits and a sharp correction like the one that occurred last May.

The high number of winning entities

According to channel data provided by Glassnode, around 95% of the market is currently profitable, following Bitcoin's recent surge above $ 55,000.

 According to the Glasnod Index, the number of profitable entities increased by 16%, during these trading moments today, Thursday, after Bitcoin's sharp rises of more than 33% since the start of the month. 

 The indicator created by Glassnode is designed to show the percentage of entities in the network that currently hold their funds in the event of profit. 

 To determine if the entity is making a profit, the indicator analyzes the “buy price,” which is the price at the time the coins were transferred to the wallet, and then compares it to the actual price of bitcoin. According to Glasnood, the last time the market hit 95% profitability, a 50% sell-off occurred almost immediately after that.

This means that once the indices rise, the number of traders looking to take profit also increases.

 Last May, the ATH level of profitable entities was reached just before the violent liquidation that swept the markets.

Different Opinions

 There are many ways to determine if a market is overbought or oversold, with some cryptocurrency traders using technical indicators such as the RSI, and some using chain data such as that offered by the Glass node. 

According to many analysts, they agreed that Bitcoin's recent rally is just the start of a new peak price scenario. Many believe that Bitcoin is approaching the peak of last April, when it hit levels of $ 65,000, while Bitcoin is heading for an annual decline of up to $ 100,000.

The crypto analyst predicted a "worst-case scenario" with Bitcoin's monthly close sequence going as planned so far. Plan B, the builder of the stock-to-flow model, said the worst-case scenario for Bitcoin would exceed $ 63,000 for October. 

According to Stochastic or Relative Force, Bitcoin (BTC) is expected to see a "significant" price increase thanks to a rare bullish phenomenon that has just emerged for the first time in seven years. 

Institutional appetite for crypto shifted again from altcoins to bitcoin as BTC investment products led to inflows of digital asset products for the second week in a row.

Market now

After looking at bitcoin near the $ 56,000 levels a few hours ago, bitcoin is now trading at levels of $ 54.3 thousand, while rising slightly from increases of more than 10% in the past few years.

 The same is happening with Ethereum ETH / USD, which rose by less than 0.4% to levels of $ 3.58, whereas it was earlier trading at $ 3.63,000. 

Binance Coin BNB / USD increases 1.7% to levels of $ 443, while Cardano increases less than 4% to levels of $ 3.7. 

On the other hand, Ripple XRP is down 0.8% Nola to levels of $ 107, and Solana SOL / USD is down more than 2% to levels of $ 154.

Dogecoin DOGE / USD is down more than 5% to $ 0.24, while Terra Luna / USD is up around 2% to $ 44.44.

The article does not express a recommendation or appointment, but simply monitoring of market fluctuations, as digital currency trading involves high risks, including the risk of losing all or part of the investment amount, knowing that 'it is not fully submitted to the financial authorities.

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