The BTC record levels could soon be reached and the bulls should prepare for a new rally according to an independent analyst for which we are reading more about in our latest Bitcoin news today.
The analyst tweeted on Monday that the pair is trading inside a bullish structure which usually forms when an asset enters a consolidation period from the strong move uphill. The sideways trend gives the bulls a lot of time to prepare for the upside strategy. Eventually, the price broke out of the Pennant range as much as the previous upside movement known as the “flagopole” with the charts showing that the coin is nearing the $3,245 long. The BTC/USD target is set at $3,245 above the breakout level which sets the pair to $22,000 or even higher.
The analyst said that the coin is looking bullish but with the bullish pennant on the 4-hour that will give us a new all-time high level with extreme volatility expected so don’t use high leverage. The bullish analogy seemed to be in contrast to a few bearish theories based on the BTC on-chain data. The chief executive of data analytics CryptoQuant Ki-Young Ju posted charts where we can see the whales entering a sell-off mood. The Whale Ratio on spot exchange metric shows a short-term bearish trend after hitting a historical threshold.
If this indicator goes above 95%, it means that 95% of deposits are from the top 10 deposits and that the market will turn bearish or going sideways. Some believe that the metric didn’t explain the nature of whales but this year there was an influx of many institutional players that accumulated BTC to protect their portfolios from inflation. But the cryptocurrency has a limited cap of 21 million and this acts as a hedge against the oversupplied USD. Another analyst said:
“You have to differentiate old whales vs. new whales. MicroStrategy is one of these new whales eating up all the available supplies from old whales. Market participants composition is changing. We break $30,000 before 2021.”
The consensus on the market is bullish as well and many noted that the Federal Reserve’s quantitative with low-interest rate policies as one of the biggest upside drivers in the crypto market.
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