The latest Bitcoin on-chain activity has shown that the leading digital asset has just entered the extreme greed zone as its price draws closer to $16,000.
With Bitcoin looking to touch yet another price milestone this year, its alternative fear and greed index is presently at the extreme greed zone. The reading shows that out of a possible greed level of 100, the flagship cryptocurrency is currently 86. A look at the fear and greed index of last month shows that Bitcoin increased by 34 in the index previously at 52.
Bitcoin market experiencing little volatility
Analysts and experts have stressed since last week that traders who are flocking into the market might still be able to earn profits. With Bitcoin experiencing volatility in the market, analysts have said the on-chain metrics show that people are still rushing to get a piece of the digital asset.
A rush in purchase means that the coin will do well, which means more profits for traders in the market. In his analysis, the founder of LookIntoBitcoin, Philip Swift, has also noted that the Relative Unrealized Profit/Loss is presently showing that Bitcoin is in the greed zone.
Notably, the Relative Unrealized Profit/Loss indicator shows the level of profits investors are holding onto every time Bitcoin hits a certain point. According to Philip Swift, Investors and traders are presently holding on to massive gains that they have recorded since the bulls took over the leading cryptocurrency.
“With the bulls taking charge of Bitcoin and pushing it in an upward trajectory to reach new highs, the Unrealized Profit/Loss is now in the greed zone,” Swift said.
Furthermore, Swift mentioned that traders should sell their profits as the coin still has more room to make another price surge. Considering previous trends, one can safely assume that a price correction is not occurring anytime soon.
Bitcoin’s active addresses hit a multi-year record high
Another noticeable trait anytime Bitcoin makes a bull run is that the UPL reading always shows the digital asset in the greed zone. During a bull run, Bitcoin experiences high volatility and large price corrections than normal uptrends as traders take their profits on time.
As it stands, Bitcoin is expected to experience some consolidation after a short term bull charge. If Bitcoin will record another yearly all-time high figure, it needs the bulls to break above the $16,000 resistance. If that doesn’t happen, then the coin risks trading between the $15,500 and $16,000 zone in the coming weeks.
Aside from the technical aspect of the coin, IntoTheBlock notes that the number of active Bitcoin addresses has hit a new record high of 1.21 million. This development means that the number of user activity on the Bitcoin network is still on the rise.
It also means that users are storing their funds away from exchanges, which shows that most are not willing to sell in the nearest future. “With the number of active Bitcoin addresses hitting a new record high on November 9, it is a sign that users are flocking into the market and are accumulating the coins judging by the level of the UPL index,” the analysts said.
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