Bitcoin may show steady growth in the coming weeks

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August 24, 2022

All crypto enthusiasts are tired of the long crypto winter, so I want to get at least some good news. Some experts say that bitcoin has already overcome the most crisis months and will show steady growth in the next few weeks. They come to such conclusions, taking into account the results of the Active Address Sentiment Indicator (AASI) on-chain metric.

Details

The Active Address Sentiment Indicator has published a chart showing signs of improving market sentiment and potential growth of the cryptocurrency in the short term.

Other indicators, such as Net Unrealized Profit/Loss and RHODL Ratio, show the same results. These studies show that crypto enthusiasts today are not afraid to buy bitcoins, as they no longer believe in their capitulation of it. This trend indicates that shortly, consumer demand for this cryptocurrency will increase, which means that the asset price will gradually increase.

At the time of writing, Bitcoin is worth roughly $21,400, and the price of digital gold has dropped 11.4% over the past week, according to CoinGecko.

Charles Edwards said that the bitcoin capitulation period has long passed, so investing more and more in this asset makes sense to help it get out of the crisis faster.

The last phase of surrender is the third longest in the history of bitcoin. This went on for almost 71 days. It is longer than in 2021 but two days shorter than in 2018.

This trend shows that bitcoin can now be bought at the lowest price, but shortly the asset’s value may begin to snowball and even break through the ceiling.

It is assumed that bitcoin and all other cryptocurrencies will grow. In addition, this may give impetus to the exit of many crypto companies from the crisis.

When will crypto winter end?

So far, there is no reason to believe that the crypto winter is ending. Even if bitcoin skyrockets, the industry has not yet solved the main problems that led to the crisis. In addition, the US government does not appear to be willing to make concessions and ease regulation.

However, if the above forecast proves successful, we may soon see a softening of the industry’s climate and new business opportunities. As you know, after every major crisis, a stage of steady growth begins, but you should not think that the price of bitcoin can soar to $100,000 by the end of the year.

The crypto industry still has a lot of problems to solve before it returns to its old positions. Many experts, however, say that the way out of the crisis will be pretty straightforward, as the number of crypto enthusiasts and crypto companies has increased significantly compared to 2018.

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