- Bitcoin (BTC) has formed bullish signals within the recent consolidation phase and established support at $55,000. The upside target is at $68,000.
- The price still has room to grow, while an exchange between “small” and “big” whales is unleashed.
Bitcoin‘s price has managed to gain traction over the weekend. At the time of writing, Bitcoin was trading at $58,267 with a gain of 3.3% in the last 24 hours. On the weekly and monthly charts, BTC registers losses of 1.8% and gains of 4.0% respectively.
Trader Michaël van de Poppe believes that Bitcoin is stuck at the current price action. The trader has pegged support at $55,000. If BTC manages to hold above that level, it could gain momentum to reach new highs.
As the image above shows, van de Poppe has set $51,100 as the next important support if BTC drops towards the lower range. Otherwise, BTC must break $60,000 before continuing to a new all-time high at $68,000.
For trader “The Wolf of All Streets”, the benchmark cryptocurrency has formed a bull pennant, as shown in the image below. This continuation pattern usually forms when an asset moves from a rally into a period of consolidation. Convergence between the two trends is used to indicate a possible breakout. The trader stated:
Keep in mind that pennants often break support and become flags/parallel channels. So a drop to the low 50ks would likely make an epic bull flag, but the pennant looks juicy for now.
Bitcoin price has not reached its top
With data from analytics firm Santiment, trader Cryptobirb has shown an increase in Bitcoin’s daily active addresses as the cryptocurrency shows gains. In response to the chart below, Santiment stated via its Twitter handle:
(…) current correlation between $BTC’s daily active addresses and price. Look for activity potentially climbing higher as an indication that $60k can and should be breached!
Santiment also tracked the activity of Bitcoin whales. According to data from the past few months, whales with funds between 100 and 1,000 BTC have accumulated 353,000 BTC since February 1. Whales with 1,000 to 10,000 BTC have sold 300,000 BTC during that period.
Separately, Glassnode has looked at the number of old coins in circulation in the market. The firm believes that in a bull-run, these coins register greater mobility and can be used to determine if the market is near a top. Currently, the metric is at 36%, at previous tops it has reached 50%. In other words, Bitcoin’s price still has room to grow and reach the top of its current bull market.
In bull markets old coins tend to move more. This increases the relative supply of younger coins in the network.
We are currently significantly below this level (36%).https://t.co/D40RJ5FlAA pic.twitter.com/OIOnnChpk0
— glassnode (@glassnode) March 21, 2021
Finally, Willy Woo has taken the UTXO Realized Price Distribution (URPD) metric to determine that 7.3% of Bitcoin’s supply last moved when the price exceeded $54,000 and its capitalization stood at $1 trillion. Therefore, he has stated that the market capitalization and price have received “solid” validation. Woo concluded:
This is pretty solid price validation; $1T is already strongly supported by investors. I’d say there’s a fair chance we’ll never see Bitcoin below $1T again. It’s only been 3 months since Bitcoin broke the $19.7k all-time-high of the last macro cycle. But already 28.7% of bitcoins moved at prices above $19.7k.