Bitcoin has left all major resistance behind in the past month and has the bulls on its side: currently (time of this article) BTC is trading at 48,812 dollars with a gain of 4,8%.
After weeks in the green, the overall mood in the crypto market has improved significantly. Sellers seem exhausted and unable to continue their attacks.
Jurrier Timmer, Director of global macroeconomics at investment firm Fidelity, believe you: Bitcoin could recapture previous highs and return to pricing. In a post posted on Twitter, Timmer compares the price of BTC at different historical times.
As can be seen below, the current course of Bitcoin is similar to that of the distribution phase in February and April. At this point, the BTC price seemed stuck, but eventually moved up. Timmer:
“With the recent rally, Bitcoin’s market capitalization is approaching the old highs. If we include the rest of the cryptocurrency industry, we have reached a market capitalization of $ 2 trillion. This is no longer a sideshow, folks.“
Many experts believe that the macroeconomic environment has favored bitcoin, gold and those risky investments that can bring returns to investors. In this sense, Timmer compares the performance of BTC with that of gold in 1970.
As can be seen below, cryptocurrency and precious metal have behaved similarly. Although the expert clarifies that this prediction is “highly subjective”, it could be an indication of a future increase in value as BTC takes over the market share of gold. Timmer added:
“In fact, the fundamentals of Bitcoin (its network) are steadily improving. At its peak, there were 34,3 million addresses (with at least $1). This number fell to 31.8 million at its lowest point and has now risen again to 33.5 million.“
Is Bitcoin on its way to $100K?
Timmer presents a demand model based on an S-curve pattern that serves to determine the degree of acceptance of a technology. He also shows a supply model that resembles the stock-to-flow model of “PlanB”.
During the third market capitulation in mid-July, these models overlapped, creating a “good starting point for consolidation.” The next time these models intersect, Bitcoin will stand at about $ 100,000, as the graph shows.
Bitcoin’s hash rate is climbing back from the abyss (after the mining ban in China), although it is still far below the peak. Higher prices are likely to change that as mining follows demand.
Another positive aspect for the BTC price, according to the expert, is the exodus of miners from China. This event, which has been the main reason for the recent selling pressure, has made cryptocurrency energy consumption much cleaner and could encourage new entrepreneurs to enter the crypto market.
The capitulation events that could take Bitcoin from an all-time high at $ 64,000 to its annual low at about $ 29,000 will have a positive impact. The expert claims that short-term investors have lost market share to long-term investors or hodlers.
The latter account for about 12% of the market, according to Timmer. expert:
“I’m impressed with how resilient Bitcoin and the cryptocurrency space in general have been during this 55% correction. The speculators (tourists) were destroyed, as always with declines, and now account for only 17% of the market. This level is consistent with past lows.“
Text credits: Newsbtc
Last updated on August 21, 2021
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