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The data on the chain shows that the BTC price will rise strongly after consolidation?



Since Bitcoin's first breakthrough in early March 2021, the price of Bitcoin has once again exceeded $61,000. Over the past few hours, Bitcoin has approached its all-time high of $61,800. After a period of consolidation, Bitcoin appears ready to re-enter price discovery mode.

Some had wondered whether Bitcoin had reached the highs of this bull rally.

Bitcoin is ready to prove them wrong. While the price of Bitcoin is hovering around $60,500 as I write this, on-chain data for Bitcoin suggests that the short-term high is yet to come.

Every big increase in the price of Bitcoin has usually been accompanied by the arrival of newcomers who play the role of short-term speculators. These are people looking to make a quick profit with Bitcoin. At the same time, long-term speculators start to increase their selling pressure in the second half of the market cycle and start to take profits.

CryptoQuant CEO: The data on the Bitcoin chain is quiet, indicating that the market will not be affected by seller liquidity: Golden Finance reported that on-chain analysis service company CryptoQuant CEO Young Ju tweeted that in the past 7 days, I have not seen any important activity on the Bitcoin chain. He believes that as long as the chain is quiet at present, the Bitcoin market will not be affected by seller liquidity. [2022/7/7 1:57:53]

A good on-chain metric to observe where we are in such a cycle is called a hold wave:

On-chain data tool Nansen releases 2021 encryption industry status report: On January 27, the on-chain data tool Nansen released the 2021 encryption industry status report. The report reviews the encryption industry in 2021 from the five dimensions of DeFi, NFT, PlaytoEarn, DAOs, and the state of multi-chain symbiosis.

The report concludes that inflation concerns and the Fed's upcoming actions in 2022 will weigh on the real economy, making encryption look more attractive in comparison. [2022/1/27 9:17:44]

The length of time that each address on the Bitcoin network holds bitcoins before selling them on the market is broken down into age groups and then visualized with different color bands.

On this graph, a person who has held Bitcoin for 6 to 12 months will appear in yellow. If the person suddenly decides to sell their bitcoins, they will appear in the dark red band, which is the 24-hour band.

On-chain data tool Nansen plans to integrate Solana data analysis: On November 9th, on-chain data tool Nansen announced plans to integrate Solana dashboards to provide institutional and retail investors with extensive insights to identify emerging trends in areas such as DeFi and NFT. The Solana feature is scheduled to launch in Q1 2022 and will provide over 100 million on-chain wallet data points across networks such as Ethereum, Polygon, Fantom, and BSC. (Cointelegraph) [2021/11/10 6:42:27]

Since the beginning of the year, you can see that the trend is indeed accumulating. Everyone realizes that Bitcoin still has many benefits in the process of this wave of bull market rise.

Glassnode CTO Rafael Schultze-Kraft also just tweeted out a chart called "Coin Days Destroyed" to understand the behavior of long-term holders. This metric shows the total number of days reset by holders selling Bitcoin:

Polygon has integrated Google Cloud Platform BigQuery to analyze on-chain data: Ethereum scaling solution Polygon's blockchain data has reached Google's cloud platform BigQuery. Polygon’s integration with Google’s BigQuery enables developers to analyze on-chain data on Polygon in an easier way, according to an emailed statement Friday. Potential benefits of the integration are said to include monitoring gas fees and smart contracts, as well as identifying the most popular tokens or applications on the network. Polygon stated that being able to draw information from the more than 6 million daily transactions on its blockchain will be of great help to the growth and construction of Polygon and the Ethereum ecosystem. (Coindesk) [2021/5/28 22:53:46]

According to the indicator's three-month moving average, when it had already reached its peak at the time, the damage had fallen back to levels not seen since the summer of 2019.

If the price of Bitcoin had reached the top of this bull rally, this indicator would likely be even higher. Bitcoin holders continue to believe that the price of Bitcoin will rise significantly again in the short term.

This is also confirmed by observing the outflows of funds from major exchange platforms. The level reached is the highest in the history of Bitcoin. Apparently, the bitcoins have been withdrawn from exchanges and kept in cold storage.

This is clearly not the attitude of someone who wants to sell bitcoin.

In terms of Bitcoin prices, the BTC/USDT order book heatmap on Binance shows three major price areas to watch over the next few days: $61,188, $58,387, and $53,000.

As long as the price of Bitcoin remains above $58,387, we could see the price of Bitcoin break out to new all-time highs above $61,800 at any time.

If Bitcoin price hits a new ATH, it's headed towards $70,000.

In this search-zce for a new ATH, it is important in the short term that $58K becomes a strong support area. This is an important level as it is the first time BTC has rallied to a peak of $60,000 in mid-February 2021. From a technical analysis perspective, when an asset stabilizes above its previous price peak, it is usually a very bullish sign.

In addition to this, we can add that Bitcoin just closed this week at an all-time high above $60,000.

So everything is in place for Bitcoin to resume its strong uptrend in the days and weeks ahead. Now, more than ever, the $70,000 mark seems within reach. For players in the futures market, it may even seem like an inevitability.

Bitcoin contracts expiring in June 2021 are trading above $65,000. We could even see the contract expiring in December 2021 trading around $73,500. This is likely to be a strong signal that some investors are very optimistic about the price of Bitcoin before the end of 2021.

If you were still in doubt as we wait to see what the coming days and weeks will bring, you now know that more than ever you should keep your bitcoins in your hands. Even in the short term, the climax is yet to come.

Sylvain Saurel Author

Jeremy Translate

Jeremy Editor


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