Bitcoin (BTC) started a week when the price was having a hard time talking to reach $ 60,000. So, what awaits the Bitcoin price hovering around $ 57,000 in the coming days?
The Cointelegraph team examined five factors that will shape BTC price performance.
Coinbase IPO could disrupt flow
Stock markets did not make an impressive start on Monday, April 5th. There are public holidays in many Asian markets, and United States futures are also closed.
In the wake of the Suez Canal fiasco, oil was the only commodity that stood out, as the decision to increase supply from OPEC + countries put pressure on prices.
With the current lack of momentum, Bitcoin is in the grip of various macro effects. At the time of this writing, the $ 60,000 resistance was in place.
However, one of the important events that crypto analysts are eagerly awaiting is Coinbase’s IPO set as April 14.
As Cointelegraph reported, this is a milestone for the industry, but as seen in both old and new IPOs, sales can also be experienced on the day of the launch.
In the opinion of experts, another macro uncertainty is the speed of Corona virus vaccination and the spread of the virus.
Analyst: “Bitcoin is on the rise of $ 3 to $ 5k”
When the BTC / USD pair dropped to $ 56,000, analysts were that the price should be evaluated in a wide time frame rather than short-term transactions.
BTC, which again challenged $ 60,000 late Friday, saw bearish moves over the weekend. The pair dropped as low as $ 56,500.
“The battle between support and resistance has intensified,” wrote on-chain data service Whalemap regarding current behavior on Sunday.
“Last week’s levels are working pretty well. Bitcoin price seems to be heading towards the $ 60,045 level. Is this the calm before the storm?”
However, popular Twitter analyst William Clemente said, “This Bitcoin bull market is far from overbought according to multiple on-chain data.” summed up.
“Compared to 2017, it is seen that we are in the range of 3 thousand to 5 thousand dollars.”
While Clemente argued that there was a potential to rise before the selling pressure created by profit purchases takes place, he shared a comparative graph showing the peaks of Bitcoin’s 2013 and 2017 prices via Puell Multiple, a classic metric.
Nobody is selling BTC
Along with the record network hash rate and mining difficulty, Bitcoin appears to remain close to all-time highs, yet there is no selling appetite among miners.
Compiled by on-chain tracking resource Glassnode, the miner net position change signaled that miners were holding their newly acquired coins last week.
By contrast, overall sales were observed for 2021, especially in January, as Bitcoin hit $ 40,000 for the first time. Sales, albeit slow, came to a standstill regardless of continued price increases.
Quant analyst Lex Moskovski explains Glassnode data “they still don’t sell, they’re still piling up, it’s a clear trend” said.
Along with the miners, BTC balances on exchanges continue to decline. In other words, traders do not come close to selling for close to $ 60,000.
Exchange traded fund approaches 17,000 BTC
According to the latest data, there was a noticeable increase in institutional investors this month.
Open positions close to all-time highs have occurred in the Bitcoin futures markets. Corporate derivatives continue to be in great demand.
That’s why Purpose Bitcoin ETF, the first licensed Bitcoin exchange-traded fund (ETF) in Canada, continues to add BTC to its managed assets.
As of April 5, the AUM was 16,462 BTC, despite Purpose launching its ETF just two months ago. This equates to approximately C $ 22.1 billion (US $ 17.56 billion).
Time to consider “situational awareness”
The popular stock flow model is targeting $ 288,000 in Bitcoin price for the end of the year.
PlanB, the developer of the model, said in a statement on Sunday that the “bull / bear recognition” signal in its model replicates the movements in 2013 and 2017.
The price currently below $ 60,000 does not invalidate his prediction. argued.
“The bull / bear recognition signal (colored dots) on the chain coincides with the long-term level forecast (white line) of the S2FX model.”
S2FX expects a price of $ 288,000 by the end of 2021. This value corresponds to the average price in the current half-cycle, which will likely be completed in April 2024. The peak price before then could be twice the average, or even $ 576,000, according to PlanB.