Over the past few months, the crypto market has taken a serious hit, hitting its lowest level of the year in mid-June. Bitcoin, the king of all cryptos, also couldn’t escape the impact of the crash, hitting its 2022 yearly low of $17,700 on June 20.
However, since the last negative growth, BTC has achieved an uptrend and is on a steady path to regaining its value; recently surpassed the $24,000 mark.
Notably, at the time of writing, BTC is trading slightly lower at $23,958 with a market cap of $458,062,265,258.
What’s happening
In June, BTC hovered near the psychological $19,000 level for a few weeks, then an uptrend started. Along with the increase in its price, a surge in BTC’s profit supply percentage was seen as the metric hit a 3-month high of 62.03% on Aug. 12.
Source: Glassnode
Previous data indicated that the win percentage never fell below 65% in the last two years until January 2022 when it reached 64%.
Then it rose for a while and fell to its 2-year low. Interestingly, since the percentage supply of wins is inversely proportional to the total supply of losses, the latter marked its 3-month low at 7.123 million.
Source: Glassnode
Supply gains aside, the Lightning Network, an off-chain network that can be used to send or receive Bitcoin, also marked its all-time high.
At the time of writing, the maximum capacity of the Lightning Network was 4,560 BTC. According to Glassnode data, despite the crypto winter, a significant increase in the overall capacity of the network was registered.
Source: Glassnode
The downside
All of the above developments suggest that BTC’s performance over the past few months has been better than it was in the first quarter of 2022.
As always, opinions vary in this dynamic crypto industry. Peter Schiff, the chairman of SchiffGold and CEO of Euro Pacific Capital, recently predicted that forced selling could take the price of Bitcoin as low as $10,000.
Furthermore, he stated that not only Bitcoin but also several other crypto companies will go out of business in the near future.
bottom line
Looking at the BTC chart, the world’s largest crypto showed support and resistance at $19,000 and $22,200, respectively.
However, within the last few weeks, BTC managed to turn the resistance into its new support and continued to grow to surpass the $24,000 level, giving hope for better days in the future.
Source: TradingView
The Bollinger Bands suggest that after being in a highly volatile zone, BTC’s price could soon see a breakdown, suggesting a breakout in either direction.
Although BTC has hit a few milestones over the past few months, the same forward trend cannot be guaranteed. As mentioned by Peter Schiff, the data shown by the CMF suggests that the bears have had a slight upper hand in the market.
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