The Bitcoin market was not entirely bullish after the recent corrections, but the asset is still holding out above the $ 42,000 mark. It is worth noting that such a position leads to both bullish and bearish arguments.
BTC Price Chart | Source: Tradingview
The discussions continue to meet with mixed views and the public is still unsure which direction to take. However, it is hard to deny that there have been many strong bullish signals over the course of the week and these cannot be ignored as they are very rare.
Supply rate from sTable coin
For most of 2019, when the dominance of the USDT began to increase, the stablecoin supply ratio (SSR) was a key metric showing that the stable-value asset is clearly driving the bull market.
While many speculate that such rallies are a sign of manipulation, time shows us the logic of the effects of the SSR.
The source: KryptoQuant
According to data from KryptoQuant, SSR has decreased somewhat. This means that Bitcoin’s purchasing power has increased. If you look at the chart, whenever the SSR falls, there is a rally afterwards – a rally that always increases proportionally.
Currently, the SSR rate is well below the range observed in October 2020. After that, the strong bull market pushed Bitcoin to over $ 20,000.
The only small caveat related to the SSR ratio is that as the USDT pair rises, the SSR can match other altcoins as well. In addition, a low SSR value can trigger a simultaneous old season, which takes some of the momentum out of Bitcoin’s movement.
Reservations Bitcoins on exchanges to reduce
Another important indicator that can be assessed in addition to the SSR is the diminishing Bitcoin reserves on the exchange.
The source: KryptoQuant
Since the Black Swan event in March 2020, the outflow of Bitcoin from the exchanges has become a prominent trend across the industry. Investors have pulled BTC off all platforms, removed the strong selling pressure and increased the HODL.
At the time of writing, the same range has been reached again. Currently, Bitcoin reserves on all exchanges have dropped to March-April 2021 levels. Note that the price hit an ATH of $ 64,000 during that time.
This can be seen as an important bullish signal as the tendency for price to move on a smaller volume basis will increase once there are no large amounts of BTC on the exchange. A supply shock arises, which then leads to a significant price rally.
However, the possibility of a price decline cannot be ruled out until Bitcoin reaches another “one go no return” position. To be fair, Bitcoin is more bullish than bearish right now and the next few weeks will be crucial for the world’s largest digital asset.
New model shows Bitcoin will no longer go below $ 39,000
With dwindling foreign exchange reserves and the announcement of large company purchases in the coming weeks, most analysts are optimistic about BTC.
Long-term owners now have more offerings than ever since October 2020.
The illiquid supply data in combination with the popular and highly precise stock-to-flow model form a new minimum price for BTC.
As Clemente described it, it is “Bitcoins in real time based on scarcity-based price floor”.
The new chart shows BTC’s lower bound as of this week at $ 39,000 – a level that is in line with current technical predictions of where the price will bounce off in the event of a reversal.
The source: William Clemente
Meanwhile, stock-to-flow is demanding a stronger performance from the spot price of Bitcoin, and its creator, PlanB, continues to claim a “worst case” of $ 135,000 through the end of the year.
He’s not the only one who is optimistic. In research Most recently, Bloomberg Intelligence predicts that $ 100,000 will come true for BTC this year.
“Past Bitcoin trading trends and declining supply and acceptance of the mainstream market point to significant progress this year. The price is likely to rise to $ 100,000, ”commented analyst Mike McGlone.
data the source bow CLEARitcoins and diagram price BTC | Source: Mike McGlone
McGlone says there are now no fewer than five charts pointing to a magical six-digit price – a year after Bitcoin first hit five-digit prices and never lost it.
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According to AZCoin News