Glassnode, a company that studies the markets of cryptocurrencies, collected some data which point out that the technical indicators of the market of bitcoin are beginning to rise. This change in the market sentiment suggests that it is decreasing the panic triggered from the fall that occurred from mid-march, when the price of the main criptomoneda fell than 7,400 $ 5,600 in less than an hour.For the analysts of Glassnode, the market for bitcoin has been recovering its normal course of business and there are signs that show, as a recovery of the price of more than 5%, less than the average of large movements and a higher rate of small transactions.In a report published on 2 April, the researchers point out that they have observed an increase of the addresses and active entities, which, from their point of view, it is a sign of a more widespread use of the network bitcoin, in contrast with the decreased activity that accompanied the fall of the prices of the last month. These are other expressions that suggest that the panic triggered by the fall is decreasing, giving way to recovery.Analysts Glassnode also used other metrics to support your interpretation of the sentiment of the bitcoin market is leaning towards the positive. In that sense, to time more accurately the cycle of the market used various indicators, including the gains and losses net unrealized (NUPL for its acronym in English).According to the study, this indicator provides an idea of the trend of the market and provides investors with a better assessment of the landscape, identifying periods in which the profits would be guaranteed, at the time of determine other periods in which you can prevent losses.In the past, studies of the firm have shown that when the indicator NUPL falls in the red zone, stays there for several months before emerging and recovered to the level where the market goes in cycles of hope and then optimism. However, never before has this indicator had fallen into the red zone so close to a halving, which to analysts is a signal that the current ice age will not last as long as the previous.The chart shows that the indicator NUPL fell briefly in the area of capitulation last march 13. Source: Glassnode.The other metric used by the firm is identified as MVRV-Z that you use to assess whether bitcoin is overvalued or undervalued in relation to its “fair value”. The report adds that when this indicator falls below zero, it shows that BTC is undervalued.In that sense, the last time this index fell below zero was at the end of march, for the first time since the bust that occurred at the end of the year 2018 and early 2019, when the fall had bottomed out. Now it remains to be seen if this fund lasts as long as the previous.In the following graph we see that the index MVRV-Z fell below zero between 13 and 18 march. Source: Glassnode.Bitcoin, which emerged from a financial crisis, it was never in the middle of an, until now, which represents an opportunity to evaluate how it responds to the active face of this panorama, particularly as the traditional markets around the world collapse.Precisely, in this environment, three market analysts presented their vision to Breaking News about what will happen in the future with the price of the criptomoneda. All indicate that current world events, which is unprecedented, makes it more risky to predict the movement of prices in the market of bitcoin, but they also agree that the future looks optimistic.
