Stack Funds hails Bitcoin’s ‘healthy correction’ predicts ‘euphoria’ to come

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Crypto index fund provider Stack Funds called yesterday’s pullback a “healthy correction” that was needed before Bitcoin continued its upward trajectory.

Bitcoin crossed $ 19,000 earlier this week after posting seven consecutive weeks of gains. According to the firm, the crypto has been at overbought levels since October, further reinforcing the need for a correction.

The company has looked at the parameters of market psychology and said that market participants are currently in the “belief” stage of the cycle which will eventually turn into a euphoria stage.

To back up their claims, the fund cites Glassnode’s data on Bitcoin’s unrealized net profit / loss, often referred to as NUPL – which compares the current price of BTC to the time each coin was last moved on the chain.

Historically, when the number of beneficiaries has exceeded 95%, the fund explained, this has been a good indicator of market highs. Color mapping of parameters in percentiles with different market states (Euphoria -> 75%, Belief – 50% to 75%, optimism – 25% to 50%, Hope – 0% to 25%, Surrender –

Bitcoin Net Unrealized Profit / Loss. Source: Glassnode

The state of ‘belief’ Bitcoin just went through this month lasted for over a year during the 2017 bull market, seeing the price of BTC drop from $ 850 to almost $ 20,000 – an increase of 2250%.

Extrapolating the 2017 bull market pattern to the current state of BTC, the fund suggested that even a quarter of that price increase would see Bitcoin hit over $ 86,000 next year, as we enter the phase. “ Euphoria ” of the cycle.

Other analysts also believe it’s nothing more than a failure on the road, with Mati Greenspan, founder of Quantum Economics speculate that the correction may have already reached bottom, add:

“A decline of 17% is rather tame for this stage of the cycle.”

Crypto personality Lark Davis pointed out this morning that it didn’t take long for support levels to stop the correction at $ 16,500, request “Was that the dive?” Or are we going lower?

Crypto trader “Mayne of TetherTold his more than 70,000 Twitter followers that the withdrawal will create excellent buying opportunities for altcoins. Another merchant account called “teclor tweeted that retracement is essential:

Data from the analysis platform Santiment indicated that profit taking among Bitcoin holders could become rampant, with short-term and long-term Bitcoin holders 15% and 63% respectively.