Prediction/Analysis

Bitcoin to explode above $ 50,000. Profits for the fundamentals

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Bitcoin has moved higher from all major resistance levels during the past month. BTC trades at $ 48,412 at the time of this article with a profit 3.8%.

BTC on a rally on the daily chart Source: BTCUSD Tradingview

After weeks of trading in the green, sentiment in the crypto market has turned decisively bullish. Sellers are feeling exhausted and unable continue their assault.

Director of Global Macroeconomics, Fidelity Jurrier Timmer BelieveBitcoin could retrace its previous highs and regain price discovery. Timmer posted a Twitter thread comparing the price of Bitcoin at different historical times.

As you can see, Bitcoin’s current price action looks “similar” to what happened during the distribution phase in February/April. At that point, Bitcoin’s price appeared to be stable but eventually rose. Timmer stated:

The bitcoin market cap is nearing old highs with the latest rally. Add the rest of crypto space and we reach $ 2,000 billion market cap. This isn’t a sideshow, people.

Bitcoin BTC BTCUSD
Source: Jurrien Timmer, Loyalty

Many experts believe that the macroeconomic climate favors Bitcoin, Gold, and other risky assets that can yield returns for investors. Timmer compared BTC’s performance to gold in 1970.

As you can see, cryptocurrency and precious metal behaved in a similar way. Although the expert said that this prediction is “highly subjective”, it could be a sign of future appreciation, as BTC takes over gold’s market share. Timer added:

The fundamentals of Bitcoin (its network), are actually improving steadily. At the top, there was 34.3 million addresses with at least $ 1. This number has now increased to 33.5million from 31.8million, an all-time low.

Bitcoin BTC BTCUSD
Source: Jurrien Timmer, Loyalty

Bitcoin fundamentals are strengthening, on their path to $ 100,000

Timmer introduced a demand modeling, based on the S-curve model. This model was used to determine the level and adoption of a technology. A supply model was also used, similar to the Stock to-Flow of Plan B.

This pattern formed a “good base” for consolidating during the third market capitulation in mid-July. As the chart shows, Bitcoin will be $ 100,000 when these patterns intersect again.

The Bitcoin hash rate is climbing from the abyss, following China’s mining ban, but it still remains well below its peak. As mining keeps up with the demand, higher prices will likely correct this.

The expert said that the migration of the Chinese miner is another long-term bullish factor in the price BTC. This event, which has led to recent selling pressure, has made cryptocurrency’s energy consumption more efficient and may encourage new inventors into the crypto market.

Positive implications will be had by the capitulation events which pushed Bitcoin from an alltime high of $ 64,000 down to an annual low around $ 29,000 According to the expert, short-term investors have lost market share to long-term buyers or investors.

According to Timmer data the market represented around 12%. According to the expert:

I am impressed by the resilience of bitcoin, and the crypto space as a whole, during the 55% correction. Speculators (tourists), who now make up 17% of the market, have been crushed. This level is consistent in comparison to previous lows.




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