Bitcoin
Bitcoin$50 027.23

0.70%

Ethereum
Ethereum$3 817.39

-2.38%

Binance Coin
Binance Coin$582.25

-3.39%

Dogecoin
Dogecoin$0.479151

13.65%

Cardano
Cardano$1.89

16.17%

Tether
Tether$0.999816

-0.01%

Price predictions

More investors HODL Bitcoin in anticipation of a 2021 BTC bull market


12 Oct 2020   #Bitcoin

New data shows Bitcoin’s (BTC) current price action is showing higher levels of HODLing activity than previous bull cycles. According to on-chain analyst Willy Woo, an indicator called “reflexivity” has been increasing in recent months. Woo explained that the indicator measures Bitcoin investors’ tendency to hold onto their BTC as its price rises. It’s essentially an alternative way to gauge the HODLing activity of retail investors.

There are several reasons why retail investors might be holding onto their BTC even more so than in previous bull cycles. If Bitcoin rallies in 2021, most investors would see it as a post-halving bull rally. Historically, BTC has rallied 12 to 15 months after each halving, recording a new all-time high each time. Based on the tendency of BTC to rally after a halving, retail investors might be holding as a strategy to avoid being priced out if a strong sustained rally begins.

Bitcoin has also shown a surprising level of resilience throughout multiple potential black swan events. After its initial recovery from the pandemic-induced crash in March, it has stayed above $10,000 despite numerous negative events. Most recently, the price of Bitcoin slumped after the U.S. Commodities and Futures Trading Commission (CFTC) charged BitMEX with violating the Bank Secrecy Act. After the CFTC announcement BTC price fell below $10,500 but it quickly recovered to the $10,700 support level.

The U.S. presidential election and Q4 may push BTC price higher. Industry executives and prominent investors in the cryptocurrency industry foresee the upcoming presidential election in November benefiting Bitcoin. Su Zhu, the CEO of Three Arrows Capital, said a Democratic sweep would catalyze Bitcoin due to various macro factors. He also suggested that a second term for Trump could also benefit Bitcoin. He wrote: “Biden is extremely bullish for BTC because democrat blue wave could usher in unprecedented installation of MMT agenda w/ corresponding dollar weakness and deficits. With that said Trump is also bullish.”

As Cointelegraph reported earlier this week, traders including Peter Brandt believe higher time frame charts point to a strong uptrend for Bitcoin. The combination of favorable technicals, strengthening fundamentals, and rising HODLing activity could buoy a BTC bull run in 2021.

Source

#source

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

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

© 2015-2021 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.