Bitcoin Price Analysis

Bitcoin price analysis; Are we just at the beginning of the uptrend?


The bitcoin price stabilization pattern indicates that we will probably not see the end of the current rally any time soon. Looking at the volume of bitcoins sent to exchanges for trading or sale, it can be said that investors continue to accumulate this digital currency.

to the Report In recent days, the volume of investment in the entry of exchange offices has been less than the volume of investment in the output. This suggests that the current pattern is more of a price stabilization pattern than a downtrend.

On Wednesday last week, the price of Bitcoin fell below $ 38,000 and entered the $ 37,000 range. Meanwhile, 11.3 thousand bitcoin units were withdrawn from exchange offices, which was in line with price fluctuations; However, two hours after the crash, we saw a higher volume of bitcoin outflows. During this period, 19.3 thousand bitcoins were withdrawn from exchange offices, which shows that investors are accumulating currencies instead of selling.

Reduction of inventory of exchange offices

More investors seem to be transferring currencies to their wallets in order to store their assets more securely. After the fall of the Bitcoin price from its historical peak, the stock of exchange offices decreased and is still decreasing. When the number of outgoing currencies is more than the incoming currencies, it indicates that there is no selling pressure in the market; Hence, since investors accumulate as much currency as they can, it can be said that their general policy is accumulation.

Last week’s CryptoQuant report shows that the volume of bitcoins held in exchanges has dropped by more than 100,000 units in just two days. Numbers like these generally indicate heavy sales pressure in the market. It should not be forgotten that the selling pressure also mainly leads to the accumulation phase, which ultimately leads to a price increase.

On a daily basis, we see investors withdrawing their currencies from large exchanges; It can be said that the sentiment in the market is “buying and holding” currency. Therefore, investors plan to buy as many bitcoins as possible and keep them in their wallets until the rally starts.

Continuation of bitcoin ascent

Despite the fact that we have seen prices fall at times, the outlook for bitcoin is bullish. Following the announcement of El Salvador’s acceptance of bitcoin, Uruguay announced shortly before it introduced a bill to accept digital currencies as legal tender.

Bitcoin price chart
Bitcoin price chart

Well-known banks such as Jaipurman and Wells Fargo have also announced that they have made it possible for wealthy investors to invest in digital currencies. This news has raised hopes for digital currencies to enter the public investment portfolio.

Market analysts continue to take a positive view of the uptrend in bitcoin prices. Intra-chain analyzes show that the volume of daily transactions has also increased since the recent rally.

Despite all these uptrends, it is not far-fetched to say that we are at the beginning of the current leap. On the other hand, it should not be forgotten that Bitcoin must first cross the $ 50,000 barrier to confirm its uptrend.

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