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Tuesday, September 21, 2021

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Assessing what the Bitcoin price will look like in the coming days

Bitcoin’s movement on the price charts has been quite restrictive lately. Even though the king of the market coin visited $ 50k for brief periods for the last three days in a row, it has not been able to jump above it. In fact, BTC was trading at $ 49.8k at the time of writing.

The mood swings of the market

Well, on-chain metrics were showing quite a few interesting trends at the time of this writing. For starters, consider the balance on the exchanges. Now, as seen in the chart below, the stock market balance fell below its May lows and is currently on par with 2018 levels. Overall, the cumulative trade balance drain indicates that Market participants were buying Bitcoin lately.

Interestingly, the market witnessed some solid rounds of whale buying. These large market participants have joined 41,580 BTC to your HODLings during the last 10 days. When the dots are connected, it’s pretty clear that whales have been the backbone of the ongoing shopping spree.

Furthermore, the status of most supply shock indices looked quite attractive at the time of writing. The impact rate of the illiquid Bitcoin offering, for example, had been dropping heavily since the end of August. However, this trend underwent a complete turnaround and began its move north from 2 September.

Source: Glassnode

The currency supply shock index and the high liquidity index have been on the rise since the beginning of this month. An estrangement view of the former indicates that it has recovered considerably from its reduction in April and May. Overall, this underscores the fact that trade flows have reverted to accumulation mode to keep up with growing demand.

As such, a supply shock is an event that triggers a sudden increase or decrease in the supply of an asset. The unanticipated change generally affects the equilibrium price and triggers a change in valuation. The Bitcoin market has seen some supply shocks before this. Interestingly, in most cases, the rapid increase in demand and the parallel depletion of supply led to rallies.

Taking into account the increase in demand and the state of the supply impact indices, it would be fair to expect a price increase in the coming days. In hindsight, Bitcoin should be able to register a long green candle on its price charts. What’s more, popular analyst Will Clemente made the same point in a recent post. He said,

“It looks like a huge green candle for Bitcoin is coming soon.”

This is a machine translation of our English version.

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Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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