What is the Stop Hunt Cost Basis?
The Prediction: $117,000 Target
The Technical Case
Quick Facts
- Nearly 20% of all Bitcoin supply is held by wallets with less than 10 coins
- Increasing use of decentralized finance (DeFi) platforms driving growth in the Bitcoin ecosystem
- Uptick in institutional investment in Bitcoin as a potential indicator of a new wave of buying power entering the market
What is the Stop Hunt Cost Basis?
In the context of cryptocurrency trading, a Stop Hunt is a high-volume buying spree that occurs when a large institutional investor or a group of individuals decide to buy a cryptocurrency at a given price level, essentially ‘hunting’ for stops placed by other traders. These stops are usually set by traders who are trying to limit their losses or lock in profits by setting a predetermined price level at which they will sell or buy a cryptocurrency.
The Stop Hunt cost basis is the price level at which this buying spree occurs, and it’s often a key indicator of a market’s sentiment and potential directional change.
The Prediction: $117,000 Target
Some analysts believe that the next Stop Hunt cost basis will be at $117,000.
One of the most significant factors is the current distribution of Bitcoin’s supply. As of today, nearly 20% of all Bitcoin supply is held by wallets with less than 10 coins, indicating a large chunk of the market is still speculative.
Another important factor is the increasing use of decentralized finance (DeFi) platforms, which are serving as a catalyst for growth in the Bitcoin ecosystem.
Lastly, some analysts are pointing to a recent uptick in institutional investment in Bitcoin as a potential indicator of a new wave of buying power entering the market.
The Technical Case
From a technical standpoint, some analysts are pointing to a number of key charts and indicators that support the idea of a potential Stop Hunt cost basis at $117,000.
One such indicator is the Relative Strength Index (RSI), which measures the speed and change of price movements. As of writing, the RSI is sitting at a level often seen as oversold, which could be an indication that the market is building up for a significant bounce.
Another important indicator is the Bitcoin trading range, which has been confined within a relatively narrow range of $10,000 to $15,000 for much of the past year.
As institutional investors and long-term holders enter the market, demand for Bitcoin is likely to increase, driving up the price. Adding to this is the growing use of DeFi platforms and the increasing awareness of Bitcoin as a store of value.
While there are always risks involved with trading cryptocurrencies, a Stop Hunt cost basis at $117,000 would represent a significant milestone for the market, with potential implications for investors, institutions, and the broader cryptocurrency ecosystem.
By staying attuned to these developments, we can gain valuable insights into the potential direction of the market and make more informed investment decisions.
