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Bitcoin ready to rise above $ 50K

Bitcoin has climbed above every major resistance in the past month. At the time of the article, BTC is trading at $ 48,909 with a gain of 3.5%. After weeks in the green, the general sentiment in the crypto market has turned significantly higher as sellers appear exhausted and unable to continue their attacks.

Jurrier Timmer, director of global macroeconomics at investment firm Fidelity, believes Bitcoin could recapture previous highs and return to pricing. In a post published on Twitter, Timmer compared the price of BTC with various historical points in time.

As can be seen below, the current course of Bitcoin is similar to that of the phase in February and April. At this point, BTC price appeared to be stuck but eventually moved up. Timmer said:

With the recent rally, Bitcoin’s market capitalization is approaching old highs. If we include the rest of the cryptocurrency industry, we have a market cap of $ 2 trillion. This is no longer a sideshow folks.


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Many experts believe that the macroeconomic environment has favored bitcoin, gold and risky assets that bring investors returns. With that in mind, Timmer compared the performance of BTC to that of gold in 1970.

As can be seen below, the cryptocurrency and the precious metal behaved similarly. Although the expert made it clear that this prediction is “highly subjective”, it could be an indication of future appreciation in value as BTC takes over gold’s market share. Timmer added:


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Indeed, Bitcoin fundamentals are steadily improving. At its peak, there were 34.3 million addresses (with at least $ 1). That number fell to 31.8 million at the bottom and has now risen back to 33.5 million.

Bitcoin Fundamentals Strengthening Towards $ 100K?

Timmer presented a demand model that is based on an S-curve pattern and is used to determine the degree of acceptance of a technology, as well as a supply model that is similar to the stock-to-flow model of Plan B.

During the third market capitulation in mid-July, these models overlapped and created a “good starting point for consolidation”. The next time these models cross, Bitcoin will be around $ 100,000.

Bitcoin’s hash rate is climbing back from the brink (after the mining ban in China), although it is still well below its peak. Higher prices will likely change that as mining follows demand and the Bitcoin price.

According to the expert, another positive aspect for the BTC price is the migration of miners from China. This event, which has been the main reason behind the recent selling pressure, made the cryptocurrency’s energy usage much cleaner and could inspire new investors to enter the crypto market.

The sell-off, which pushed Bitcoin from an all-time high of $ 64,000 to its annual low of around $ 29,000, will have positive effects. The expert claimed that short-term investors lost market share to long-term investors or hodlers. According to Timmer, the latter made up around 12% of the market. The expert said:

I’m impressed with how resilient Bitcoin and the cryptocurrency space in general were during that 55% correction. The speculators (tourists) were, as always with declines, wiped out and now only make up 17% of the market. This level is consistent with past lows.

Proof of text: newsbtc

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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