Bitcoin Price Rally by 2021 Looks Likely From Five Fundamental Factors
The price of bitcoin is skyrocketing and the range of it would be USD 8600 to USD 10,000 in the last two months. There is volatility that has been shown by bitcoin since May, which has a rejection at USD 10440. There are a few fundamental factors that are prolonged till 2021. Based on the data that is collected by Skew, it is found that the volatility of bitcoin has dropped to lowest till June 24. The traders are very much conscious that the BTC would be at the critical price point. The performance of the bitcoin would have many hints for its price throughout the year. The volatility of bitcoin has hit a yearly low last June 24. The cryptocurrency traders have a positive sentiment on the bitcoins and its market.
In the short term analysis that is carried out, the analysts would be viewing the weakness of the bitcoins and other types of cryptocurrencies due to this pandemic. However, over a period of time, there are a few macro factors that would suggest that BTC has come back to its feet for its firm recovery. There is data that gives ample support to the anticipation of the increase in holdings of the investors. As per Rafael Schultze-Kraft, the Chief technical officer who is working at Glassnode, different data related to the holding will give a boost to the investors. The supply of bitcoin has been constant throughout the year, but has seen a rise in its price all the time to 61%. Nobody is ready to sell the bitcoins even if the price level has hit to its maximum. Shultze-Kraft stated that 61% of bitcoin supply has remained stagnant over a year. The 44% has remained to be the same throughout the year and 30% has remained the same in the last 3 years.
There is a metric that is known as Holder Net Position Change has shown that the investors of bitcoin have accumulated a lot of bitcoins in 2020. Many are not showing interest to sell them. There are only 16 days in which bitcoin price was down. If the bitcoin remains positive, it means that the investors are not moving funds from their walls to the exchanges to sell them. The price of this digital currency has seen a drop USD 3,600 in many of the key futures exchanges. The bitcoin value has been increased from USD 4,000 to USD 14,000.