Bitcoin (BTC) bulls have finally gathered enough strength to push the top-rated cryptocurrency to the $ 60,000 level and, citing important chain metrics, analysts believe the bull run still has a long way to go before achieve any considerable resistance.
Since exceeding $ 50,000 on March 9, each drop in Bitcoin’s price has been quickly bought by institutional investors and the BTC whale balance has also continued to grow in recent months.
What is the next Bitcoin price?
A recent report by Jarvis Labs analyst Ben Lilly, analyst Ben Lilly highlighted the “two steps forward, one step back” nature of Bitcoin’s price movements last week, noting that the price increase was accompanied by “four disadvantages of 5% ”.
According to Lilly, Bitcoin’s price action is a good sign of making a healthy profit, since vertical prices “are only healthy when they reach their highest peaks”, also known as price discovery.
To gain a better understanding of where the price may be going, Lilly noted that wallet sizes of 100 to 1,000 BTC retain about 63,000 BTC more than on February 28, indicating that these whale portfolios have been accumulating since the plunge in preparing for the price to move higher.
According to Lilly, “this class of portfolios was the one that best timed the 2017 rally”.
Another bullish indicator highlighted by Lilly is the strong accumulation that has been happening since the price of BTC broke $ 20,000, which has not decreased since then.
Lilly said:
“The last time we saw such an aggressive accumulation was in August 2017. The top of this market cycle has only been seen for four months.”
Lilly further explained that while it is almost common for Bitcoin price to see occasional drops after touching an all-time high, they do little to change the upward trend.
Lilly said:
“So, to avoid any confusion about what we are trying to say with these graphs … Bitcoin has room to run here. If it decides to rip, it will go away.”
Currency outflows support the bullish narrative
A recent report by Decentrader co-founder Philip Swift echoes Lilly’s optimistic sentiment, pointing to Bitcoin’s currency outflows in recent months. As shown in the chart below, Coinbase and Bitstamp have experienced a significant reduction in their foreign exchange balances since mid-December 2020.
The report highlighted that the reduction in available BTC is “being driven by people and institutions removing Bitcoin from exchanges to keep it in cold storage.” This, in turn, reduces the supply of liquid available to sell quickly in the market and lessens the changes of a quick sale.
Swift noted that a large amount of BTC being withdrawn from exchanges is being pooled in WBTC and placed on DeFi protocols. This somewhat reduces the optimistic narrative, as tokens are not completely removed from circulation and placed in cold storage, which means that liquidity has not really been reduced.
Another interesting sign discussed by Decentrader is the comparison between Bitcoin held for one to two years with those held for three or more years.
In the past few weeks, the BTC held by investors less than three years ago began to be sold as ‘shorter-term’ holders began to make a profit. Although these levels are decreasing, Bitcoin investors who have been holding on for more than three years have been building up recently and, according to Swift, this signals that “Bitcoin probably still has a lot more advantages to go” in the current bullish cycle.
Swift said:
“Looking at this graph, you can see where we are in comparison to the previous 2017 cycle, when these HODL lines behaved similarly … approaching approximately half the cycle, in our opinion.”
For David Lifchitz, investment director at ExoAlpha, the Bitcoin price action between February 22 and March 11 seems to be forming the classic cup and loop formation, which is a bullish pattern according to technical analysis. Lifchitz explained that the price drop experienced on March 11 represented the “top of the cup” for those who monetized the 10% gain from $ 45,000 to $ 57,000. ”
According to Lifchitz, a slight indentation of no less than $ 52,000 and an upward jump would form the handle of the cup. The break above the rim of the cup ($ 58,000) would open the door to another advantage of Bitcoin’s price.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you must conduct your own research when making a decision.