It was a nice surprise for bitcoin holders when the leading crypto sailed past $68k to reach a new all time high (ATH). Its market cap has also outstripped that of Tesla and Facebook. Some traders have declared it “clear for take-off” and are ready to begin a further price discovery beyond $70k.
As Cointelegraph notes, the BTC/USD pairing has enjoyed two consecutive nights of gains following a weekend of lingering around $62k. Since then it is up a total of 11.4% in just over two days.
Filbfilb, co-founder and analyst at trading platform Decentrader, commented that Bitcoin was now tackling what he called the “Great Wall of Finex”: this is a large sell wall on exchange Bitfinex around $70,000 contrasting with recent heavy whale accumulations. Indeed, according to another article in today’s Cointelegraph, the share of Bitcoin’s supply that has remained inactive for the past three months spiking to a record high of 85%, indicating that a lot of holders are intent on holding on to their BTC in hopes of even higher prices.
To the moon?
Will we see a revival of the popular bullish Twitter sentiments and a return of ‘When Lambo’? There are traders predicting $98k by the end of November. A few days ago this most would say this was impossible, but now there is less disbelief in that figure.
On the other hand, what we have seen in 2021 is relatively modest market movements compared with the patterns seen in 2013 and 2017, when the velocity of gains that followed Bitcoin’s block subsidy halvings were more sensational. The market behaviour is similar now to those two years, but it’s just a bit lower key.
Still, institutional demand shows no signs of abating ahead of a possible spot price exchange-traded fund (ETF) launching in the United States. SkyBridge Capital CEO Anthony Scaramucci, a man who is always bullish on bitcoin, said today, “$70k on Bitcoin coming up,” and indicated he is still buying it. He added, “Large institutional demand has finally arrived. Trying to get in orders before 2022.” Back in 2013 and 2017, that demand didn’t exist at the same levels as now, and as we enter an inflationary environment, Bitcoin’s appeal over gold as hedge against it received a boost overnight, its market cap hitting 10.7% of gold’s.
Furthermore, the trend of accumulation does not appear to be slowing down, with the share of supply held on centralized exchanges also dropping to a record low of 12.9% as BTC is increasingly placed into secure storage. This favours a bull market: “Until this trend changes it will continue to put upward pressure on price as demand for Bitcoin has to accept higher prices amongst the limited supply available,” says Decentrader.
Bitcoin’s three-day chart, which Decentrader holds to be an especially accurate price tool, is now bullish, indicating “a probable channel for price action, which could see Bitcoin hit $150,000 by the start of 2022.”
That would be an excellent start to the year for every Bitcoin holder.