Three charts show that Bitcoin’s price is ready to explode to higher levels

 169 total views


2021-03-27 01:11:14

– Advertisement –

According to a series of key indicators on the chain, Bitcoin appears ready to hit new highs

Recently, on his Twitter, analyst Willy Woo listed signals that indicate an increase in Bitcoin trading activity on US crypto exchanges. For example, a metric measuring the total amount of BTC balances available on trading platforms warns of a persistent decline. That shows traders have become long-term holders of Bitcoin, thus creating a supply shock in the market.

Meanwhile, the supply held by “weak-handed” investors has been exhausted (“weak hands” here refer to wallet users with a history of selling Bitcoin). This is a great sign because BTC is currently held by “strong hands”, wallets tend to hold longer than buy and resell.

This activity shows absorption of selling pressure. Short-term traders decided to secure their returns earlier in the bull cycle. Meanwhile, those with a long-term investment setup decided to buy Bitcoin, balancing the bearish trend with cumulative actions.

This of course is extremely optimistic. The “strong hands” have bought each time the price falls, which has caused prices to rise sharply since the fourth quarter of 2020. The red bars track the volume of production from “weak hands” to “strong hands” each day.

Institutions have begun to accumulate Bitcoin amid monetary inflation.

In addition, governments, companies and households raised $ 24 trillion last year to offset the economic damage caused by the coronavirus pandemic. It pushed global debt to $ 281 trillion by the end of 2020, accounting for 355% of global gross domestic product. Economists note that debt will increase by $ 92 trillion by 2021 as central banks maintain extremely low lending rates and government increases in lending.

Hence, fiat currencies are in great danger of devaluing. In the US alone, companies have borrowed about $ 2.5 trillion in the bond market in 2020. Meanwhile, the US dollar index, has fallen by more than 12%.

Buying bitcoins in place of cash has recently emerged as an upbeat investment strategy. Big players like Tesla, MicroStrategy, Square and Meitu have added billions of dollars worth of Bitcoin to their balance sheets, sparking hopes that more companies will imitate the move.

Analyst Willy Woo said:

In my opinion, what is happening is that institutions in the United States and high net worth individuals are grabbing available coins (Bitcoins) from the underdogs and holding them to deal with. with monetary inflation. The deep drop in Coinbase’s BTC supply shows that US institutions are buying there.

This phenomenon is expected to last when the US Federal Reserve decides to maintain the loosening of monetary policy until 2023. Meanwhile, the total stimulus package worth 1.9 trillion USD of the General Joe Biden, along with plans to increase spending on infrastructure, also made a boost to the surge. Bitcoin price happenning.


Maybe you are interested:

#charts #show #Bitcoins #price #ready #explode #higher #levels

Related Posts

Leave a Reply

Your email address will not be published.

Close Bitnami banner
Bitnami