Stack Funds Predicts Bitcoin Euphoria Ahead Despite Recent Correction
Bitcoin shocked the global crypto population yesterday after the bears took over to send the price crashing, which saw the digital asset lose close to $3,000 in the process. The bearish run generated massive outcry as most people were expecting the leading digital asset to hit its all-time high record in its latest bullish run.
With that, Stack Funds, a firm that provides crypto index funds, has noted that the bearish run was expected as Bitcoin has been predicted to make a healthy correction in the days leading to the pullback that occurred yesterday. Stack Funds noted that the healthy correction was a needed factor before Bitcoin continues its upward move.
Stack Funds says Bitcoin is moving to the Euphoria stage
Bitcoin was on its way to make history as the digital asset broke through the $19,000 mark after positing massive gains across seven weeks before yesterday. In its review, Stack Funds said it supported the much-needed correction as Bitcoin was already at an overbought level since the beginning of October.
According to the firm, while observing the market psychology surrounding the coin, it noted that crypto users and investors are now in their belief stage, and things are gradually flowing into a euphoria stage.
To back up its claims, the firm pointed to various on-chain data reported by Glassnode on Bitcoins unrealized profits/loss. This is often referred to as NUPL, a phenomenon used to describe the comparison between Bitcoin’s latest activity on the on-chain and the current price of the digital asset. Furthermore, Stack Funds noted that the best trigger which has seen the price of Bitcoin surge is the number of people who have enjoyed profit from the market.
Analysts say Bitcoin will touch $86,000 if the bull run of 2017 happens
Stack Funds also talked about each market determinant’s details and noted that Euphoria is currently going higher than 75%, with Belief at 50%. The firm also mentioned that optimism, Hope, and Capitulation were 25%, 25%-50%, and 0%-25%, respectively. The firm also noted that the belief that the digital asset has held had lingered from 2017 when the bulls first took over the coin to this present market, which has seen the digital asset price rise from $800 to almost $20,000.
While comparing the 2017 bull run to the one that occurred this year, Stack Funds noted that if the same bull run happens now, Bitcoin’s price will touch around $86,000 before the year ends. Seasoned analysts also note the current pullback is just like an obstacle on the road to the digital asset hitting its new all-time high record.
Again, this new pullback period is also seen by analysts as a period for investors and buyers to buy the dip and wait for the next bull period. Santiment has also complimented its data that showed that Bitcoin traders are presently taking profits in the market with the short term traders taking about 15% and long term traders taking close to 63% profits.