One of the hallmarks of the bitcoin chain is that given the supply and demand of the market, this digital currency should be traded at a price of at least $ 55,000.
to the Report The Bitcoin Telegraph, one of the benchmarks of the Bitcoin market, indicates that the price of this digital currency should be at least $ 55,000. This key criterion, called the Supply Shock, refers to a situation that ends with the rapid increase in demand for stock exchanges.
Willy Woo, a well-known digital currency market analyst, tweeted yesterday, adding that the estimate was “conservative”.
The price of bitcoin goes by in-chain criteria
Although Bitcoin has not yet been able to turn the $ 50,000 level into a solid support, the intra-chain benchmarks have been getting stronger and stronger for some time.
The “supply shock-based valuation” model has now been added to other in-house benchmarks, setting the price at $ 55,000 as a conservative estimate for bitcoin.
Simply put, the supply shock measures the ratio of non-redeemable inventory to redeemable and available bitcoin inventory. This criterion is much deeper than it first seems. Willy Woo uses supply shock as a magic tool to be able to understand investors’ decisions even before an order is placed by investors.
Wu wrote in a post last month:
In this perspective of supply and demand, the investor who does not intend to sell is in the category of demand and the one who is willing to sell is in the category of supply.
In addition, the supply shock-based valuation model uses an algorithm that can compare supply and demand in previous time periods with current conditions, thus estimating the price offered.
“The ratio of bitcoins in cold wallets to digital currency exchanges is at a record high,” he said.
This is one of [برآوردهای] Conservative is the supply shock model, [چراکه] The supply shock at digital currency exchanges is now at an all-time high and there is no sign of a return to the previous situation.
The following indicator shows that the price of Bitcoin fluctuates simultaneously and without any deviation from the points related to the intention of investors to buy or sell assets.
Also Read: Weekly Anchor Analysis of Digital Currencies September 1 (September 10)
Maintaining $ 50,000 support is the first hurdle for buyers
Bitcoin supply shock is a term that is most often used recently in 2021, one year after the Howing event (halving the block reward).
Miners are now rewarded with only 6.25 bitcoins per block, and the market has behaved almost like in the post-Howing years of 2013 and 2017.
However, the conservative target of $ 55,000 is higher than the minimum price expected by PlanB, the creator of the flow accumulation model, for the end of this month. He predicts that the September price will close at $ 43,000 in the most pessimistic way possible.
Plan B. has said that the upward trend will continue in earnest after the end of September (September) and Bitcoin will experience a price of at least $ 135,000 by the end of 2021.
At the time of writing, Bitcoin is trading at around $ 51,800 and the market has fluctuated slightly in the early days of the week.