After the worst start to a year since the so-called Crypto Winter of 2018, bitcoin has begun to show some signs of recovery.
Its price rebounded from $33,000 at the end of January to above $37,000 at the start of February, with some analysts claiming that certain market trends hint at a return above $40,000. One such indicator suggests that bitcoin is currently oversold.
The 30 per cent price drop last month was reflected across the broader crypto market, which has lost close to $1.3 trillion from its overall market cap since peaking at an all-time high of close to $3 trillion in November.
Leading cryptocurrencies, including Ethereum (ETH), BNB and Cardano (ADA), have benefitted from the uptrend in recent days, though the momentum of the recovery appears to have stalled on Thursday.
You can follow all the latest cryptocurrency news, analysis and expert price predictions right here.
Bitcoin is ‘currently the 4th most oversold in its history’
Will Clemente, lead insights analyst at the mining firm Blockware Solutions, has noted that one metric suggests bitcoin is “currently the fourth most oversold in its history”, hinting at a strong buy signal for investors.
His analysis is based on dormancy flow, which refers to the average number of days each coin transacted remained dormant or unmoved – a gauge of spending patterns.
Commenting on the market trend, pseudonymous Dutch analyst PlanB described it as “exciting times ahead.”
Read full story on The Independent