- The price of Bitcoin has jumped for eight straight days, heading into a long streak.
- The Grayscale Bitcoin Premium Index has rebounded significantly, closer to zero than ever since May 2021.
- Bitcoin’s spot foreign exchange reserves are showing a downward trend, suggesting a build-up in the near term.
The recent rally in Bitcoin prices has put the crypto pioneer on track for another bull run. Analysts at the chain say no significant demand is needed for the price to continue to rise.
Bitcoin price recovery expected to be longest in 2021
Bitcoin has made a comeback, and the increase in price over the past eight days could lead to the asset’s longest rally in 2021. The exit chart of all BTC exchanges shows the total amount of BTC transferred from portfolios to Trading and an increase in exits (less BTC available in exchange wallets) means a decrease in the pressure to sell BTC.
The exit of BTC from the exchanges has significantly reduced the reserves of the asset. This is a sign of accumulation on the spot exchanges, and it supports the narrative of a price rally after breaking above the $ 30,000 price level. In addition, no new output peak has been seen in the past two days.
The analyst’s interpretation is that large investors are likely to resist a bear sell-off. There is no need for significant demand for the price to continue to rise.
Exit from all BTC exchanges
The price of the asset has been rising every day for more than a week. Pankaj Balani, CEO of Delta Exchange, said:
The current momentum is strong, and $ 45,000 is in sight, but a conclusive break above $ 50,000 will take time.
Another key metric fueling the bullish BTC narrative is the GBTC premium index. This metric tracks capital flows in the Grayscale Bitcoin Trust (GBTC), the largest BTC investment vehicle for institutional investors. Currently, this indicates that demand from institutions is increasing in the US bull market.
The GBTC premium index rebounded significantly to -3.4, its closest to zero level in the past three months. Currently, the index is at -11, still above the level observed over the past two weeks.
GBTC premium index
Several metrics signal a bullish run. Despite this, the price of BTC is well below its mid-April high of almost $ 65,000. Undeterred by the current price point, channel analysts have a bullish outlook and see a potential break in BTC prices beyond $ 44,000.
Daniel Joe, an on-chain BTC analyst, tweeted
The recent #bullish price action in #BTC continues to help the Daily Momentum move closer to passing over neutral. Whenever this happens, we need to see the follow-up above for validation. Strong confirmation and validation will likely push BTC to 44.6k to 45.1k.
– Daniel Joe (@DanielJoe916) July 28, 2021