Bitcoin has seemingly entered no man’s land, with the price ping-ponging between $11,000 and $12,000. A top analyst has corroborated this sentiment, recently noting that neither his bull nor bear case has been confirmed.
Chances are that this consolidation will resolve upward, though, according to a new analysis. This analysis suggests that there is little on-chain resistance stopping BTC from rallying to new local highs and beyond.
Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, ETH DeFi Boom, BitMEX KYC
Bitcoin Could Be Buoyed as Few Sellers Remain
According to recent data from WhaleMap shared by a crypto trader, there is little on-chain resistance stopping a Bitcoin rally from current levels. Referencing the chart below, the trader wrote:
“To add to this…: This chart shows where bitcoins where accumulated at. What do you see? There are very few bag holders left. Meaning, there is little sell pressure left. The only real sell pressure now is people taking profits.”
Chart of BTC's price action over the past three years with a on-chain upsent BTC analysis shared by crypto trader ByzantineGeneral and from WhaleMap.io
Mike McGlone, senior analyst at Bloomberg Intelligence, has also commented on how Bitcoin’s supply-and-demand dynamics suggest prices are tilted to appreciate in the longer run.
The commodity analyst and cryptocurrency bull said the following on August 19th:
Bloomberg Intelligence Commodity Primer – Something unexpected needs to happen for #Bitcoin’s price to stop doing what it’s been doing for most of the past decade: appreciating. Demand and adoption metrics remain favorable vs. the #crypto asset’s unique attribute of fixed supply.
Bloomberg Intelligence Commodity Primer – Something unexpected needs to happen for #Bitcoin's price to stop doing what it's been doing for most of the past decade: appreciating. Demand and adoption metrics remain favorable vs. the #crypto asset's unique attribute of fixed supply. pic.twitter.com/E0wxubOlHF
— Mike McGlone (@mikemcglone11) August 19, 2020
Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop
Fundamental Trends Suggest Bulls Are in Control
Certain fundamental trends also suggesting that Bitcoin bulls are in control.
Fidelity Investments this week filed paperwork with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin-focused fund.
Dubbed the “Wise Origin Bitcoin Index Fund I, LP,” the fund will soon be offered to accredited investors, analysts say. Bloomberg sources have said that fund will only hold Bitcoin, and will act as a way for accredited investors to gain exposure to the flagship digital asset:
“The passively-managed, Bitcoin-only fund will be made available to qualified purchasers through family offices, registered investment advisers and other institutions, according to a person familiar with the matter. Fidelity Digital Assets will custody the fund, the person said. The minimum investment is $100,000.”
Adding to this, Federal Reserve chairman Jerome Powell announced this week that the central bank may let inflation drift above the 2% target. Analysts say that this comment boosts the intrinsic value of scarce assets like BTC and gold.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com On-Chain Analysis Suggests There Are Few Bitcoin Sellers Preventing a Rally
by Nick Chong on August 29, 2020 at 12:30PM
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