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Analysts say $ 60,000 BTC bitcoin price signals have enough “room to run”

Bitcoin (BTC) The bulls eventually amassed enough force to push the top cryptocurrency to $ 60,000, and with reference to key metrics in the chain, analysts believe the bulls run ahead of them before they reach significant resistance.

Since March 9, when it pushed back above $ 50,000, every drop in the price of bitcoin has been quickly bought by institutional investors, and the BTC whale balance has continued to grow in the last few months.

4-hour BTC / USDT chart. Source: TradingView

What will happen next with the price of bitcoin?

A recent report from Ben Lilly, an analyst at Jarvis Labs, an analyst at Ben Lilly, highlighted “two steps forward, one step back” the nature of bitcoin price movements over the past week and noted that price increases were accompanied by “four 5% disadvantages”.

According to Lilly, the bitcoin price action is a good sign of healthy profits, because vertical prices are “healthy only when the maximum is exceeded at all times,” otherwise known as price discovery.

To better understand where the price might go, Lilly noted that wallet sizes of 100 to 1,000 BTC hold 63,000 more BTCs than on 28 February, suggesting that these whale wallets have been accumulating since Preparing for the price will move higher.

According to Lilly, “this class of wallets timed the 2017 rally the best.”

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Number of BTC storage addresses. Source: Glassnode

Another rising indicator that Lilly pointed out is the strong accumulation that has taken place since the price of BTC broke $ 20,000, which has not slowed since.

Lilly said:

“Last time we saw an accumulation that was so aggressive in August 2017. The peak of this market cycle was not recorded for another four months.”

Lilly further explained that while at the bitcoin price it is almost common to see the occasional drawdown after touching a new historical high, they cannot change the bullish trend.

Lilly said:

“So, to avoid confusion about what we’re trying to say with these charts … Bitcoin has room to run here. If he decides to rip out, it will work. “

Interchangeable drains support the bull’s story

A recent report from Decentrader’s co-founder, Philip Swift, encourages Lilly’s bullish sentiment by pointing to the outflow of bitcoins in recent months. As the following chart shows, Coinbase and Bitstamp have seen a significant drawdown of their exchange balances since mid-December 2020.

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Bitcoin balance on stock exchanges. Source: gwelding node

The report emphasized that the reduction in available BTC is “driven by people and institutions that take bitcoins from exchanges to keep them cool.” This in turn reduces the supply of liquid available for quick sale to the market and reduces changes in quick sales.

Swift noticed that a large number of BTCs downloaded from exchanges were packaged in WBTC and embedded in DeFi protocols. This somewhat reduces the bullish story, as the tokens are not completely removed from circulation and stored in a cold store, which means that liquidity has not actually been reduced.

Another interesting signal discussed by Decentrader is the comparison between bitcoins held for one to two years compared to those held for three or more years.

In recent weeks, BTCs held by investors for less than three years have begun to sell as holders of “short-term” returns begin to make profits. While these levels are declining, bitcoin investors holding for more than three years have actually accumulated recently, and according to Swift, this signals that “bitcoin is still on the rise in the current bullish cycle.”

(image)
Percentage of bitcoins offered last active 1+, 2+ and 3+ years ago. Source: gwelding node

Swift said:

“Looking at this graph, it is possible to see where we are compared to the previous cycle in 2017, when these HODL lines behaved in a similar way – in our opinion, they are close to about half of the cycle.”

According to David Lifchitz, executive director of ExoAlpha, the price action for bitcoins between February 22 and March 11 appears to form the classic cup and handle shape, which according to technical analysis is a bull pattern. Lifchitz explained that the drop in prices recorded on March 11 was the “peak of the cup” for those who monetized a 10% profit from $ 45,000 to $ 57,000. ”

According to Lifchitz, the handle of the cup would be a slight pull, which should not be less than $ 52,000 and a recoil. A leak above the edge of the cup ($ 58,000) would open the door to further strengthening from the price of bitcoin.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.


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