The Bitcoin (BTC) bulls have finally gathered enough strength to push the top-ranked cryptocurrency towards the $ 60,000 level, and referring to keychain statistics, analysts believe that the trend has ways to overcome before it meets any significant resistance. …
Since the bitcoin price returned to over $ 50,000 on March 9, the fall in the bitcoin price has quickly been bought up by institutional investors, and the whale BTC balance has also continued to increase in recent months.
What’s next for Bitcoin?
A recent report by Ben Lili, an analyst at Jarvis Labs, analyst Ben Lili, highlighted the trend “two steps forward, one step back” in Bitcoin prices over the past week, noting that the price increase was accompanied by “four 5% restrictions”. …
According to Lilly, Bitcoin’s price action is a good sign of stable profits, as vertical prices are “only good for breaking historical highs”, known as price determination.
To better understand where the price may go, Lilly noted that wallet volumes between 100 and 1,000 BTC contain about 63,000 BTC more than on February 28, indicating that these whale wallets have piled up after the decline in preparations. For the price to get higher.
According to Lilly, “This category of wallets was the best in the 2017 rally.”
Number of BTC lookup addresses. Source: Glassnode
Another bullish indicator Lilly noted is the significant rally that has occurred since the price of BTC peaked at $ 20,000 and has not slowed down since.
“The last time we saw such strong growth in the market was in August 2017. We have not seen this peak of the market cycle in another four months. ”
Lilly went on to clarify that while it is almost normal for the price of bitcoin to see periodic declines after reaching new full-time highs, they do little to change the up-potential.
“So to avoid confusion about what we are trying to say with these schemes … Bitcoin has the opportunity to operate here. If you decide to hack, you go. ”
The outflow of funds from the stock exchange supports the bullish narrative
A recent report by Decentrader co-founder Philip Swift confirmed Lilly’s positive sentiment, noting the outflow of bitcoin exchanges in recent months. As shown in the chart below, the currency balance of Coinbase and Bitstamp has fallen significantly since mid-December 2020.
The report emphasizes that the decline in available BTC “is due to people and institutions taking bitcoins from freezer stocks.” This in turn reduces the readily available supply of liquidity in the market and reduces frequent sales changes.
Swift noted that most of the BTC drawn from the centers is wrapped in WBTC and placed on DeFi protocols. This lowers the bullish combo box somewhat as tokens are not completely removed from trading and placed in cold storage, which means that liquidity does not actually decrease.
Another interesting signal that Decentrader discussed compares bitcoins held for one to two years against those held for three or more years.
In recent weeks, the sale of BTC, which investors have had for less than three years, began when “short-term” owners began to make a profit. While these levels are falling, bitcoin investors who have held them for over three years have recently rallied, and according to Swift, this indicates that “Bitcoin is still likely to have a lot of up-potential” in its current upward cycle.
The deposit percentage for Bitcoin was active 1+, 2+ and 3+ years ago. Source: glass node
“If you look at this graph, you can see where we were compared to the previous cycle in 2017, when these HODL lines behaved in a similar way … in our opinion about the middle of the cycle.”