However, price consolidations after an ATH aren’t something the market naturally worries about.
Ergo, with the upgrade now live, it’s the perfect situation to gauge the market structure and analyze where the top coin’s price could go from here.
Bitcoin’s sensitivity to the market’s FUDs didn’t slow down as the asset’s market cap grew over the last couple of months.
This, because recent price volatility between the $60-69k range resulted in a drop in the funding rate.
Here, it’s worth noting that in November 2020, towards the end of the month, BTC, after making an ATH, saw some consolidation and rallied into December making new ATHs.
For instance, the Monthly Realized Cap Oscillator which presents the rate of realizing a profit on a 30D base is not similar to April 2021, when it was greater than 10%.
However, core on-chain metrics like the number of addresses with non-zero balances and the number of new addresses continue to hold higher levels.
Nonetheless, with the Bitcoin network welcoming the Taproot soft fork upgrade, the same could play a role in the market reset.
Disclaimer: AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice.