5 factors that point to Bitcoin’s record breaking in the short term

It has been found that the Bitcoin (BTC) price has been under intense selling pressure from whales in the last two months. On-chain data hints that sales are starting to decline and repurchases will increase.

Five critical market data reveal that institutional demand remains strong, with major sellers starting to accumulate Bitcoins again.

If these indicators are correct, the Bitcoin price will experience an explosive rise that could see all-time highs in the near term.

Here are 5 critical factors that reveal that the Bitcoin price will rise:

Whales stopped selling

The number of addresses with 1,000 or more Bitcoins in them has decreased by around 10 percent since February. In other words, there were intense BTC sales during this period.

Although the bitcoin price has seen its all-time high in the two-month period, the overall price increase has slowed significantly. Currently there is strong resistance around $ 60,000, but since March 31, big Bitcoin holders have stopped selling.

İNumber of addresses with 1,000 or more BTC in them. Source: Glassnode

This decline was actually expected, as Bitcoin saw a 104 percent price increase since the beginning of the year. In the statement made by digital asset manager Grayscale on April 6, it was stated that they sold Bitcoin through the digital capital fund.

Considering that similar moves are coming from different institutional investors, it can be assumed that sales are largely over.

Long-term investors are slowing their sales

The indicator called “Bitcoin days destroyed”, calculated by looking at how many days ago the spent BTC was purchased, shows that long-term investors are reducing sales.

“Bitcoin days destroyed” indicator and 21-day moving average. Source: Glasssnode

This data reveals that long-term Bitcoin investors are confident that the Bitcoin price will rise in the near future.

Miners started to accumulate Bitcoins again

Bitcoin miners; They regularly sell their BTCs to pay for all operational expenses, such as electricity costs. On the other hand, miners can also speculate on prices because they are whales.

Miners who reduce selling become residual accumulators as they are constantly producing.

Net position change of bitcoin miners. Source: Glasssnode

About three months ago, miners stopped selling Bitcoins and there was a massive price increase. Consequently, the data currently formed show that miners are expecting a high BTC price in the near future.

Institutional demand is still high

Despite the selling pressure from whales, institutional demand for Bitcoin has not slowed down. The net Bitcoin transfer volume that leaves and enters the exchange is at a very low level. This means that more Bitcoins are being attracted than are currently being deposited on exchanges.

In other words, BTCs are moved to cold wallets. This application is mostly preferred by institutions. Because they prefer safer storage solutions instead of leaving their money in the stock market.

Net Bitcoin transfer volume (14-day moving average) when leaving / entering exchanges. Source: Glasssnode

Since the Corona virus outbreak, there has been a shortage of supply in Bitcoin deposits. Since November 2020, as institutions began to accumulate larger amounts of BTC, the price has also risen. It seems that the price will continue to rise as the trend continues.

The rising triangle on the weekly chart is about to break

Since the beginning of February, a rising triangle pattern has formed on the weekly candlestick chart of the Bitcoin price. Statistically, this graphic pattern has the possibility of breaking in the opposite direction rather than from below.

If the price breaks up, the price indicated by the triangle is around $ 79,000. Of course, it is not certain that the breakout will be upward, but it should be considered when combined with other signals on the chain.

Weekly candlestick chart for the BTC / USD pair. Source: TradingView

Whether it’s a long-term investor, miner or a whale, all powerful players in the market have confidence that the Bitcoin price will rise.

The ascending triangle pattern gives a strong reason to believe this move is imminent. It will not surprise anyone that the Bitcoin price is $ 79,000 in the near future. Because even Bloomberg analysts point to $ 80,000 for the second quarter Bitcoin price.

The opinions and comments expressed here belong only to the author. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

Check Also

Crypto Markets Need More Scrutiny From SEC, Investor Groups Say

Investor advocacy groups urged SEC chair Gary Gensler to more tightly regulate the cryptocurrency industry …

Leave a Reply

Your email address will not be published. Required fields are marked *