Bitcoin
BTC$22 994.25

-3.54%

Ethereum
ETH$1 687.91

-5.10%

Tether
USDT$1.000205

0%

USD Coin
USDC$1.000033

0.02%

Binance Coin
BNB$322.84

-0.68%

Binance USD
BUSD$1.000068

0%

Bitcoin on-chain data suggests no bull market top at $60K


12 Apr 2021

#Bitcoin

For the very first time in a Bitcoin (BTC) bull market, not only long-term investors but also short-term speculators who usually add to the daily sell pressure toward the end of a market cycle have become increasingly confident of higher prices as they hold on to their Bitcoin. This only adds to the already existing supply shock. If demand remains strong, this is a recipe for another leg up for the BTC price.

Every Bitcoin bull market usually coincided with an increasing number of short-term speculators coming into the market hoping to turn a quick profit, while long-term speculators start to add sell pressure toward the second half of the market cycle to realize their profits. One of the best on-chain indicators to see this trend unfold in each cycle is called HODL waves. Hereby, the length at which each BTC address holds Bitcoin before they are sold into the market is clustered into term buckets that are then visualized in different color bands.

For example, someone who held on to their Bitcoin for five months would fall into the 3m-6m bucket, the light orange color band. If that person decides to sell, it falls out of that bucket and would show up in the 24h-term bucket, the dark red color band. This means, the redder the colors are in the HODL waves chart on a respective date, the more short-term turnover of Bitcoins happens. This activity is almost at its lowest during a bear market, and at its highest during a bull market, while the short-term activity tends to peak around a bull market top.

Bitcoin selling activity whether it is from speculators or long-term holders is declining while also the annual spending behavior relative to the market capitalization is surprisingly low. All these on-chain data points suggest that the market is inching to an even deeper supply squeeze. This is one of the best rocket fuels to send the Bitcoin price higher. However, this is not a guarantee as it requires continuous demand for the price to appreciate in this environment. Therefore, a close eye on high-net-worth individuals and institutions’ demand should be kept, as they have recently been the main driver on the buyer side.


Related

Bitcoin's bullish stability
Bitcoin's bullish stability
Bitcoin remains in ascending corridor
Bitcoin remains in ascending corridor
Bitcoin retreats from the upper boundary of an uptrend channel
Bitcoin retreats from the upper boundary of an uptrend channel
Musk has clipped the wings of Bitcoin
Musk has clipped the wings of Bitcoin
Crypto's full swing recovery
Crypto's full swing recovery
Blockchain projects are pulling the crypto market up
Blockchain projects are pulling the crypto market up
Bitcoin dipped into a flat
Bitcoin dipped into a flat
Bitcoin benefiting from gains in equities
Bitcoin benefiting from gains in equities
Cryptocurrencies rise after equities
Cryptocurrencies rise after equities

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 78.4% 35 $22 994.25 -3.54% 0.01% $439 591 538 662 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68.8% 68 $1 687.91 -5.10% 3.56% $205 761 571 724 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.6% 1 $1.000205 0% 0% $66 531 586 544 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 96% 1 $1.000033 0.02% -0.01% $54 021 851 086 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 71.2% 62 $322.84 -0.68% 11.75% $52 086 335 344 BNB 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 95.2% 1 $1.000068 0% 0.01% $17 752 502 175 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 77.6% 36 $0.363424 -3.65% -1.50% $17 569 045 535 XRP 7 days price change
8 Cardano (ADA) ADA Cardano predictions 72% 50 $0.511389 -4.25% 1.61% $17 253 774 183 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 73.6% 44 $39.74 -6.33% 3.54% $13 844 600 613 SOL 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 93.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 68.8% 62 $8.71 -4.69% 9.10% $9 626 327 113 DOT 7 days price change
12 HEX (HEX) HEX HEX predictions 64.8% 70 $0.054592 -1.19% 18.95% $9 466 937 752 HEX 7 days price change
13 Dogecoin (DOGE) DOGE Dogecoin predictions 81.6% 28 $0.068228 -6.49% 1.79% $9 051 914 563 DOGE 7 days price change
14 Avalanche (AVAX) AVAX Avalanche predictions 70.4% 55 $27.42 -3.30% 17.24% $7 814 089 843 AVAX 7 days price change
15 Dai (DAI) DAI Dai predictions 92% 1 $0.999863 0.05% 0.03% $7 525 054 582 DAI 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.