Despite Bitcoin entering into the fourth month with its head down, key technical and fundamental indicators seem to now signal incoming strength that could catapult price to new highs or at least north of its current situation.
According to Glassnode, trigger-happy investors seem to have lost their steam, seeing the liveliness of the market fade away, which is good for the price. The on-chain metric powerhouse tracks Bitcoin’s price behavior to Liveliness, a macro metric that trails coin dormancy vs coin-day destruction.
The metric points to decreased on-chain activity leaving Hodlers in control, which could buoy up prices.
“The current market is seeing a preference for HODLing, rather than spending. This leads to a downtrend in liveliness, typically seen within the context of bear market accumulation phases,” Glassnode notes.
This is also in tandem with a recent report by Kraken crypto exchange which shows a drastic drop in market activity as Bitcoin’s price overstretched into the oversold region.
March 2021 is the last time such a drop in on-chain activity was recorded, after which Bitcoin’s price surged an impressive 130% to tap an all-time high in November.
PlanB, the bitcoin Stock-to-Flow (S2F) creator also insists that Bitcoin is headed for higher prices. According to his S2F model which makes price predictions based on the concept of scarcity, Bitcoin’s price seems to still be on the model’s growth path after staying above the moving average weighted indicator despite the ongoing bloodshed.
“Bitcoin continuous upward momentum (4-year perspective), the rest is mere volatility,” he writes.
PlanB’s 4-year bullish prediction falls in line with the thoughts of other experts such as Jirayut Srupsrisopa, C.E.O of Bitkub, Thailand’s largest digital asset exchange. According to him, Bitcoin’s “golden period” is imminent especially with the next halving in 2024, which, historically, has always been followed by a sustained bull run.
Jirayut, 31, further asserts that the ongoing correction and wild volatility is expected “as tightening liquidity is squeezing fund inflows, especially from retail investors.”
Others like William Noble, the chief financial analyst at Token Metrics are counting on the sentiments of investors. He asks investors to be on the lookout as Bitcoin tends to make surprise moves especially in times like these.
“Bitcoin is underpinned by lingering bearishness from the last down move,” William has recently said. “In the near term, I think there could be a bullish surprise that catches people off, guard.”
That said, although, Bitcoin seems to be caught up in a tight squeeze that is being occasioned by conflicting fundamentals, the price could soon break out following a surge in positive investor sentiments. At the time of writing the asset is trading at $36,545 after a spirited battle to recapture $40,000 in the past 10 days.
