The big news for Bitcoin is the price. The market wasted no time rallying after the monthly close, with a total absence of high timeframe pullbacks. The underlying economy looks solid, too, so Bitcoin spot ETF hype is now turning into a full-fledged bull market. However, bitcoin holders don’t appear to have any interest in selling into the market’s strength.
(Source: Swissblock Crypto Compass)
Bitcoin remains one of the top-performing assets globally in 2023, with its value increasing by nearly 150% year-to-date. Meanwhile, the amount of bitcoin in circulation that hasn’t moved in 1+ year hit a new all-time high these days. This reduction in circulating supply contributes to a positive feedback loop for the asset’s price, as it takes fewer net new dollars to move the price higher.
(Source: Glassnode)
Bitcoin’s supply moves well into profit (and Salvador’s bet, too), wild predictions are back, Robinhood traders are back, MicroStrategy acquires an additional 16,130 Bitcoins, and the spot ETF window narrows.
The overall market appears very strong but is also approaching high timeframe resistance levels, as noted by Technical Roundup chartists. With weekly resistance at $42-43k, generally overlapping with a wider monthly timeframe area, the mid-$40,000s look like a non-trivial ‘sticky’ area for the price. (Read the complete analysis here in PDF.)
(Source: Technical Roundup newsletter, PDF)
The downside risk should not be ignored here. At the same time, the appearance of being ‘overbought’ on certain timeframes and indicators doesn’t mean a correction is imminent. Swissblock’s analysis suggests that Bitcoin may continue to rise for many more days, causing investors’ FOMO to spread to more and more layers.
And for that matter, we got one rumor for you from Max Keiser:
Of course, this is a rumor lacking concrete evidence and solely stems from statements by Max Keiser, a divisive figure in the crypto community. Keiser has repeatedly claimed that more Latin American countries are on the cusp of adopting Bitcoin. Although the accuracy of his timeline is questionable, the basic premise of his assertions may hold true.
As for the rumored plans of a Qatar Sovereign Wealth Fund to invest $500 billion in Bitcoin, for us, this remains an area of hopeful anticipation rather than confirmed fact.
Certainly, bears might get their last ‘black swan’ event akin to that of March 2020, which would offer a great entry opportunity for bulls, something eagerly anticipated by many sideliners. However, by definition, black swans are not predictable, so why try to expect the unexpected?
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MetaTalks disclaims responsibility for any investment advice that may be contained in this article. All judgments expressed are solely the personal opinions of the author and the respondents. Any actions related to investing and trading in crypto markets involve the risk of losing funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.