Accéder au contenu principal

Investors to Exercise Caution as Bitcoin Enters Higher Volatility Environment: Bitfinex


Cryptocurrency exchange Bitfinex has warned investors to exercise caution in their trading strategies as bitcoin (BTC) has entered a higher volatility environment.

According to the latest edition of the Bitfinex Alpha report, BTC’s recent ascent to the $38,000 range may not last for a while, as on-chain metrics show that the digital asset could retrace its steps and fall to the $31,000 range.

Investors Urged to Be Cautious

Bitcoin’s surge to the $38,000 level for the first time since May 2022 led to roughly $491 million in liquidations, the largest since the August 17 flash crash. While the asset has witnessed a remarkable price performance this year, it is important to judge its potential next move from past cycles.

Bitfinex said the key to understanding BTC’s price movements is the Short-Term Holder Realized Price (STH RP), which indicates the average purchase price by investors who have held the asset for 155 days or less. Comparing the STH RP with BTC’s price helps to determine investor profitability.

Bitcoin currently hovers around the $37,000 range while the STH RP is at $30,380, marking the widest gap between the two metrics since April 10, 2022. Historical cycles show that the month-over-month change in STH RP reaching a threshold of $2,000 is a sign of a local peak, which follows the recovery phase in bear markets.

However, if the market witnesses a negative monthly shift in Long-Term Holder Realized Price (LTH RP), long-term holders are also liquidating their bitcoin investments.

BTC’s Market Cap Close to $750B

Currently, the monthly positive change in STH RP and the negative shift in LTH RP suggest that the price of BTC has reached a local peak, and a retraction to test the STH RP level is expected. As the STH RP hovers around $30,380, BTC may pull back to the $30,000 to $31,000 range.

“At Bitfinex Alpha, we have been discussing the possibility of a new bull market, or the ending stages of a bear market, since December 2022 and throughout the rise we have seen in BTC since the beginning of the year. However, it is important to be cautious,” Bitfinex stated.

Notably, the STH and LTH levels can change as they are dynamic measures.

Meanwhile, BTC’s market cap is close to exceeding the $750 billion mark for the first time since April 2022, indicating a major milestone in the recovery of the leading crypto asset.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).


Source link

The post Investors to Exercise Caution as Bitcoin Enters Higher Volatility Environment: Bitfinex appeared first on Job From Home Blog.

Libellés :

Commentaires

Enregistrer un commentaire

Posts les plus consultés de ce blog

13 Apps and Websites That Will Pay You To Watch Ads

Do you know you may get paid to look at advertisements? You possibly can, however b efore you get too excited, perceive that watching advertisements will not exchange your day job or purchase you a brand new automotive. They do, nonetheless, create nice alternatives to monetize your downtime.  How To Watch Adverts for Cash Should you personal a smartphone, there are a lot of methods to earn cash on this gig financial system. Watching advertisements is a wonderful method for 14 and 15-year-olds in search of work  to earn money. Earn cash by watching advertisements briefly bursts in your free time, like when your youngsters are napping or throughout a espresso break. You might also be capable to redeem factors without cost Amazon present playing cards or present playing cards from different retailers . Which brings us to the query, how precisely do you receives a commission to look at advertisements, and the way a lot cash are you able to anticipate to make? What websites do y...
Enregistrer un commentaire
Lire la suite

AI research highlights in finetuning ChatGPT-like LLMs

This article is a compilation of 23 AI research highlights, handpicked and summarized. A lot of exciting developments are currently happening in the fields of natural language processing and computer vision! In addition, if you are curious about last month’s highlights, you can find them here: AI Research Highlights In 3 Sentences Or Less (April-May 2023) Direct Preference Optimization: Your Language Model is Secretly a Reward Model ( https://ift.tt/fV1dLTZ , 29 May 2023) Direct Preference Optimization (DPO) is a new alternative to reinforcement learning with human feedback (RLHF) with Proximal Policy Optimization (PPO), which is used for instruction-finetuning models like ChatGPT. Here, the researchers show that the cross-entropy loss for fitting the reward model in RLHF can be used directly to finetune the LLM. According to their benchmarks, it’s more efficient to use DPO and often also preferred over RLHF/PPO in terms of response quality. LIMA: Less Is More for Alignme...
Enregistrer un commentaire
Lire la suite

MicroStrategy Spends Another $600M to Purchase Over 16,000 BTC

MicroStrategy, the NASDAQ-listed business intelligence software giant that made waves over three years ago with its pro-Bitcoin strategy, has gone on another buying spree. The firm’s former CEO and founder – Michael Saylor – outlined the latest BTC purchase, which was worth nearly $600 million. Saylor asserted that the company he founded over three decades ago had spent $593.3 million to buy 16,130 BTC more for an average price of $36,785 per Bitcoin. This has become MicroStrategy’s second BTC purchase for November. As reported before, the firm bought 155 BTC for $5.3 million at the start of the month. The latest acquisition puts the company’s total stash at 174,530 BTC. It spent just under $5.3 billion to purchase the amount. This means that MicroStrategy sits on a massive unrealized profit of over $1.2 billion, given BTC’s current price of $37,750. MicroStrategy has acquired an additional 16,130 BTC for ~$593.3 million at an average price of $36,785 per #bitcoin . As of 11...
Enregistrer un commentaire
Lire la suite