Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: syedrasool2011 on August 31, 2020, 09:29:18 AM
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Five key fundamental factors suggest that Bitcoin is preparing for an extended uptrend by 2021.
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The price of Bitcoin (BTC) has been bouncing in the range between $8,600 and $10,000 for the past two months. BTC has shown little volatility since May, following a critical rejection at $10,440. However, five major fundamental factors still point toward a prolonged uptrend by 2021.
According to data from Skew, the 10-day realized volatility of Bitcoin dropped to the lowest level of the year on June 24. This may indicate that traders are cautious because BTC is at a crucial price point. The performance of BTC over the next several weeks could hint at its price trend throughout the year’s end.
Realized volatility of Bitcoin hit a yearly low on June 24
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Generally, the sentiment of cryptocurrency traders on the medium-term outlook of Bitcoin remains positive. In the short term, analysts see weakness in BTC and other leading cryptocurrencies due to external variables like the COVID-19 pandemic.
Over the long run, strong macro factors suggest BTC is on track for a firm recovery. The most prominent piece of data that supports predictions of a positive trend is the increase in “HODLing” activity among investors.
Heavy accumulation of Bitcoin
According to Rafael Schultze-Kraft, the chief technical officer at Glassnode, various HODLing data shows a rise in investor confidence. To start with, Bitcoin’s supply that has not moved for over a year has hit an all-time high, standing at 61%. It demonstrates the lack of appetite to sell BTC at the current price level. Shultze-Kraft said:
“First, the obvious one: 61% (!) of Bitcoin supply that hasn’t moved in over a year — that’s an all-time high. Moreover, 44% hasn’t moved in 2+ years (approaching ATH), and almost 30% hasn’t moved in 3+ years. Loads of hodling here.”
More Details: https://cointelegraph.com/news/bitcoin-price-rally-by-2021-looks-likely-from-five-fundamental-factors