As local highs of $ 42,400 emerged on July 31, market narratives point to a bullish Bitcoin “supercycle”.
The bulls come out for 2021 close
Bitcoin has been busy mending the impact of the rout of Chinese miners since mid-May, but last week’s price hikes have been bigger than expected
Related: Bitcoin’s Open Interest Mimics Q4 2020 As New ‘Cautiously Bullish’ Report On BTC Rally
Rather than taking a serious dip, BTC price action has held onto its gains, which at the time of writing total 23% in one week.
What seemed nearly impossible just seven days ago is now the flavor of the month among a growing section of the analytical community.
“History does not repeat itself but it often rhymes” #bitcoin
A repetition would be a hit with Q4. New ATHs in 2022 seem more likely. The super cycle / last cycle will depend on what happens in 2023 IMO. https://t.co/07Ryn3pcTf
– ChartsBTC (@ChartsBtc) July 31, 2021
“After three troubling months of news and price developments, bitcoin continued to print five monthly green candles in a row and increased about 10 times in the second half of 2013,” Jeff Ross, Founder and CEO of Vailshire Capital, noted in the Twitter comments on Saturday.
“I still argue that 2021 will behave the same way. “
With its latest rise, BTC / USD broke its 21-week exponential moving average, which analyst Rekt Capital said. describe as a “time-tested bull market indicator”.
The supply shock is back
While Ross added that such a prediction was “just a guess,” he has a growing number of chain indicators to back him up.
The hash rate is back above 100 exahashs per second (EH / s) after hitting a low at 83 EH / s, while the difficulty saw its first positive readjustment since the May price crash on Saturday.
Investor behavior more closely mimics the change in sentiment. Big hodlers with little to no history of selling their BTC are now back in control at levels never seen before and absent since Bitcoin’s current record of $ 64,500 in April.
“It’s very bullish”, Lex Moskovski, investment director of Moskovski Capital, résumé alongside a companion graphic from Glassnode. This showed Hodler’s belief in terms of an increasing amount of the BTC supply becoming illiquid – taken off the market.
“Bitcoin’s ‘supply shock’ is now at levels that previously valued Bitcoin at $ 53,000,” said William Clemente, analyst. commented on the same data.