Bitcoin left all major resistance behind it in the past month and has the bulls on its side: Currently (time of this article) BTC is being traded at $ 48,812 with a gain of 4.8%.
After weeks in the green, the general mood on the crypto market has improved significantly. The sellers appear exhausted and unable to continue their attacks.
Jurrier Timmer, director of global macroeconomics at investment firm Fidelity, believes: Bitcoin could retake previous highs and get back to pricing. In a post published on Twitter, Timmer compares the price of BTC at different historical points in time.
As can be seen below, the current price trend of Bitcoin is similar to that of the payout phase in February and April. At this point, BTC price appeared to be stuck but eventually moved up. Timers:
“With the recent rally, Bitcoin’s market capitalization is approaching its 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. “
Many experts believe that the macroeconomic environment has favored Bitcoin, gold and those risky assets that can bring returns to investors. With that in mind, Timmer compares BTC’s performance with gold in 1970.
As can be seen below, the cryptocurrency and the precious metal behaved similarly. Although the expert makes 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 adds:
“Indeed, Bitcoin’s fundamentals (its network) 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 low point and has now risen again to 33.5 million. “
Is Bitcoin On Its Way To $ 100K?
Timmer presents a demand model that is based on an S-curve pattern and is used to determine the degree of acceptance of a technology. He also shows an offer model that is similar to the “PlanB” stock-to-flow model.
During the third market cap 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, as the graph shows.
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 are likely to change that as mining follows demand.
According to the expert, another positive aspect for the BTC price is the migration of miners from China. This event, which was the main reason behind the recent selling pressure, made the cryptocurrency’s energy use much cleaner and could inspire new entrepreneurs to enter the crypto market.
The surrender events, which took Bitcoin from an all-time high of $ 64,000 to its annual low of around $ 29,000, will have a positive impact. The expert claims that short-term investors have lost market share to long-term investors or hodlers.
According to Timmer, the latter account for around 12% of the market. The expert:
“I’m impressed with how resilient Bitcoin and the cryptocurrency space in general were during this 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
Last updated on August 21, 2021
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