Bitcoin bullish rally imminent analysts predict

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The price of bitcoin remains in the $ 30,000 band, exhibiting low volatility, while several important metrics suggest that there are conditions for a bullish breakout. The analytical firm Glassnode, in its latest weekly report, reviewed by CriptoNoticias last Thursday, points out that the outgoing flows of BTC from exchanges have resumed. In consecuense, their BTC inventories have dropped by about 40,000 BTC in three weeks.

After a dominance of BTC entering exchanges, the trend reversed in July. Source: Glassnode.

This means that there has been, on average, an outgoing flow from exchanges of 2,000 BTC per day, according to the Glassnode study. This firm also highlights that part of the miners that had closed operations in China, have relocated their operations to other latitudes, which has affected a recovery of the hash rate.

Faced with the low volatility of the price, Glassnode expresses: “It seems that calm is coming before the storm, with low activity in both spot prices, derivatives and on-chain metrics.”

Bumpy times are coming for bitcoin, says Willy Woo

Low price volatility is not consistent with bitcoin’s on-chain metrics that are decidedly bullish, Willy Woo reiterates this week. There would be little time for the price of bitcoin to have a big movement in its price, says Woo in his latest newsletter, commented by CriptoNoticias this Friday the 16th. is imminent for the analyst and could happen as of this Saturday 17, although it establishes a range until next Saturday the 24th.

The target price of bitcoin would be in a band between USD 50,000 and 60,000, according to Woo. In addition to supporting his thesis of lower availability of BTC, the analyst draws attention to the parabolic growth of network users. He maintains that in previous cycles local maximums of new users have been registered, and that when there is a decrease in these, this fact also marks the beginning of a downward phase of the price.

Whales and little fish restart accumulation of BTC

A study by Ecoinometrics, of five segments of bitcoin holders, from the so-called “fish” to whales, and reviewed this Saturday 17 by CriptoNoticias, shows that these groups have begun to accumulate bitcoin, while the intermediate segments remain neutral. This finding coincides with the Glassnode study discussed above, on the exit of 2,000 BTC per day from exchanges, and with the fact that a part of the miners that has also resumed accumulation.

Featured tweet of the week

In this tweet, Bloomberg Intelligence’s merchandise strategy manager, Mike McGlone, compares the annual evolution of bitcoin supply (purple line), always decreasing, with the balance sheet of the Federal Reserve of the United States. This shows its most notable increase in the last year, which is proportional to the money supply available. The Fed’s balance sheet is already equivalent to 60% of the US gross domestic product.

Dollar race towards devaluation compared to bitcoin supply. Source: Bloomberg Intelligence.

McGlone highlights the growth of dollar-pegged stablecoins, the fact that bitcoin is vying for gold for its place as a store of value, and the “Fintech infrastructure” powered by Ethereum.

Altcoin season concludes

Amid the bitcoin price correction, the major altcoins have lost their momentum in recent weeks. The so-called altcoin season, in which the top 50 outperformed bitcoin in the past 90 days, is over. According to the analysis of the Blockchain Center, commented by CriptoNoticias last Wednesday the 14th, only 41% of the Top 50 altcoins outperform BTC.

Bitcoin dominance so far this year 2021. Source: CoinMarketCap.

Bitcoin’s dominance, which had hit a low of 40% in the third week of May, has risen to 46%, although it is still well below the 70% at the beginning of the year.

Prices on the rise in the US

The consumer price index, a key indicator of the US economy, increased 5.4% in June, compared to June 2020, which implies a significant increase in the price of products and services. According to the bulletin of the United States Department of Labor, commented on Wednesday 14 by CriptoNoticias, this is the highest year-on-year increase in this index since August 2008. The increase in used cars was the highest of all categories, 10.5% compared to May, and 45% compared to June 2020.

Bank of America customers will access bitcoin

Bank of America, one of the main banks in the United States, would allow selected clients to access the bitcoin futures market, according to CriptoNoticias reported last Thursday 16. The decision coincides with similar announcements from multiple financial institutions, that are including investing in bitcoin and other cryptocurrencies, as an alternative strategy to traditional assets. In the case of Bank of America, this decision is notorious given its position against investing in bitcoin, considering it “impractical”.

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