5 key reasons why Bitcoin will likely see new all-time highs soon

5 key reasons why Bitcoin will likely see new all-time highs soon

The price of bitcoin (BTC) has been under severe pressure for the past two months, blockchain data shows.

However, five key indicators suggest that large sellers are about to fall back on bitcoin traders and even hoarders, while institutional demand remains strong. This is an explosive situation that could send bitcoin to new highs in the near future.

Whales no longer sell

The number of whales considered bitcoin recipients with a balance of 1,000 bitcoins or more has dropped by more than 10 percent since February 8, indicating significant bitcoin liquidation.

Although the bitcoin price managed to hit two all-time highs during the two-month dumping period, overall price growth has slowed considerably and the price has found strong resistance around $60K. Since the 31st. However, in March, major bitcoin holders stopped selling.

Bitcoin: Number of addresses with a balance > 1k. Source: Glass transition

5 key reasons why Bitcoin will likely see new all-time highs soon


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The rebalancing of institutional portfolios is typically a sale before the end of the quarter. Given that the price of bitcoin has risen 104% since the beginning of the year, this is to be expected.

Grayscale, the largest manager of digital assets, announced yesterday that it had just rebalanced its large-cap digital fund by selling bitcoin.

If rebalancing is the main driver, and given the number of addresses worth 1,000 BTC or more has returned to year-end levels from which significant price increases began, then the whale sale may be over for now.

Long-term bitcoin sellers slow down

After bitcoin surpassed its 2019 high last October, it embarked on not only one of the fastest, but also one of the longest increases in Coin Crash Days (CDD).

This metric chain expresses the weight at which long-tailed hodlers are sold. It is calculated by taking the number of coins in the transaction and multiplying it by the number of days that have passed since those coins were last issued. This means that the more days the parts are destroyed, the greater the volume sold.

However, since the beginning of the year, Long Hodgepipe sales have not only slowed down significantly, but are almost back to where they were at the beginning of last year.

Bitcoin: CDD (Coin Days Destroyed) 21-day moving average. Source: Glass transition

5 key reasons why Bitcoin will likely see new all-time highs soon


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This suggests that long-term hodlers are more confident that the bitcoin price will rise in the near future.

miners becomebitcoin hoarders again

Since bitcoin miners’ income comes from newly mined bitcoins, they must regularly sell mined bitcoins to cover their operating costs, such as electricity costs. However, some mine operators tend to speculate on prices.

By limiting bitcoin sales, they become pure hoarders. This results in a change in Miner’s net position, which reflects the change in 30D of land at Miner’s addresses.

Bitcoin: CDD (Coin Days Destroyed) 21-day moving average. Source: Glass transition

5 key reasons why Bitcoin will likely see new all-time highs soon


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The last time miners were hesitant to sell their bitcoins was just before the price spike that occurred almost three months ago. This positive development indicates that miners expect higher prices in the near future.

Continuing strong institutional demand

Despite the selling pressure from the physical whales, institutional demand for bitcoin has not waned. Net bitcoin transfers to/from exchanges are deep in the red, near historic lows, meaning more bitcoins are being withdrawn from exchanges than deposited.

This is a sign that these parts are being transported to a cold storage facility. This is typical of institutions, as they tend to invest for the long term and prefer safer custody solutions than leaving them in the stock market.

Bitcoin: Net transfer volume to/from the stock exchange 14-day moving average. Source: Glass transition

5 key reasons why Bitcoin will likely see new all-time highs soon


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The largest collapse of bitcoin trading in history is a phenomenon since the pandemic. It became even more important when the institutes met in large numbers in November 2020.

This is evidenced by the significant and steady decline in bitcoin balances on exchanges, and particularly on Coinbase, which has been the most visited by institutions in recent months.

Bitcoin: Balance in the stock market. Source: Glass transition

5 key reasons why Bitcoin will likely see new all-time highs soon


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Meanwhile, Coinbase released its earnings data and guidance for the first quarter yesterday, with the following statement:

The $223 billion in assets on the platform, or 11.3% of the crypto asset market share, includes $122 billion in assets from institutions on the platform. … We expect significant growth in trading and custody revenues in 2021, as institutional interest in the crypto asset class has increased.

This not only gives confidence that institutions have significantly increased their sales, but also that this buying trend will not stop any time soon.

Weekly upward triangle will be broken soon

Since early February, a weekly ascending triangle has formed. Statistically, this chart shows a higher probability of an upward breakout than a downward one.

In the event of a price breakout to the upside, the size of the triangle suggests a potential breakout target of $79,000. Although neither a breakout to the upside nor a price target is an indication, this chart is worth watching, as are important signals within the chain.

1 week candlestick chart BTC/USD. Source: View of the shop

5 key reasons why Bitcoin will likely see new all-time highs soon


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The drivers of the market, whether long term hodlers, miners or whales, are all showing signs of confidence in the growth of the bitcoin price.

The rising triangle gives even more reason to believe that this movement is coming, and upwards. While no one would argue against a bitcoin price of $79,000 in the near future, a triangle split is also a possibility to consider, as all major intra-chain signals are not fully aligned at the moment.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.

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