3 reasons to jump bitcoin again to $ 60,000

Despite the downturn, continuing political controversy and the recent volatile bitcoin trend, there is still room for the digital currency to jump back to $ 60,000. Analysts point to three reasons for this, which they believe will make the digital currency market rise again.

According to the Quinn Telegraph, the price of bitcoin fell below $ 38,000 in March and lost all the highs it had reached last week, reaching $ 45,000.

Brent oil rose 18 percent earlier in the day to about $ 139 a barrel, the highest level since 2008. Heavy sales in high-risk markets and falling prices seem to be mainly due to rising crude oil prices.

However, when bitcoin failed to mitigate the risk of market fluctuations for its holders, some investors were skeptical of using it as a “value-saving tool.” Meanwhile, on Monday, the Bitcoin’s correlation ratio with the Nasdaq Composite Index, an index of 4,000 US and non-US stocks on the Nasdaq stock exchange, reached 87%.

Weekly chart of bitcoin / dollar prices and its correlation with Nasdaq and the gold index
Weekly chart of bitcoin / dollar prices and its correlation with the Nasdaq and the gold index.

In contrast, the correlation of bitcoin with gold, its main competitor, fell to a negative 38%, indicating that they performed quite differently during market turmoil.

On the other hand, despite the escalation of the Russia-Ukraine conflict and the possibility of a rise in US bank interest rates in March, bitcoin is likely to continue to decline.

However, some technical and internal indicators in the shorter period show an upward trend and a possible return of the price to $ 60,000 in the coming months.

Bitcoin multi-year uplink support

If history repeats itself, the recent decline of bitcoin to the level of support for its long-term uptrend could pave the way for a possible return to $ 60,000 resistance.

Weekly chart of bitcoin / dollar prices, indicating the time of the bear markets
Weekly chart of the price of bitcoin by determining the time of descending markets.

It should be noted that the trend line consisting of bitcoin support points and the trend line consisting of its horizontal resistance points have created an ascending triangle pattern. This situation has been going on since December 2020. The floor of the model serves as an accumulation area and the ceiling acts as a sales area for retailers.

The number of bitcoin whales is increasing

On the other hand, CoinMetrics data shows that wealthy investors buy bitcoins at the same low prices.

For example, the number of addresses with at least 1,000 bitcoins (whales) increased exponentially between February 27 and 28, from 2,177 to 2,266.

Bitcoin addresses with a balance of at least 1000 units
Number of bitcoin addresses with a balance of at least 1000 units.

During the same period, the price of bitcoin rose from about $ 38,000 to about $ 45,000. On March 6, the price of bitcoin fell below $ 38,000, but only three of these whales sold their bitcoins and were removed from the list of addresses with at least 1,000 in stock. This shows that rich people have decided to keep their capital despite the temporary negative feelings in the market.

Johal Miles, an independent market analyst and investor, also notes that when the price ranges from $ 33,000 to $ 38,000, many investors accumulate more bitcoins. As a result, it will be difficult for sellers to break support for this range.

The process of withdrawing bitcoins from exchange offices remains constant

Data from Santiment, the digital currency analysis service, show that as of October 2021 (October), 81% of the net weekly flow of incoming and outgoing bitcoins from exchanges is negative. In other words, during this period, the volume of bitcoins that have left the exchanges is more than the volume of bitcoins that have entered them. The price of bitcoin, approaching its six-month low, has not changed anything.

In a tweet on March 7, Santiment wrote, citing the chart of bitcoin inflows and outflows at exchange offices (photo below):

Withdrawals of bitcoins from exchanges in the last 21 weeks of the last 26 weeks have been higher than the flow of accounts in exchanges.

Bitcoin inbound and outbound flows in exchanges
Bitcoin inflows and outflows in digital currency exchanges.

The increase in the outflow of bitcoin exchanges shows that investors are trying to keep bitcoin in the long run. Conversely, the increase in bitcoin inflows from exchanges indicates that investors intend to exchange their bitcoins for other digital assets or fiat currencies.

Bitcoin inventory on the stock exchange
Bitcoin stock chart.

According to CryptoQuant, shares of digital currency exchanges are still declining. The availability of bitcoin exchanges has already reached its lowest level since September 2018 (September 97), ie. 2.4 million bitcoins.

The publication 3 reasons bitcoin to jump back to $ 60,000 appeared for the first time in digital currency.

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