Bitcoin continues to consolidate in the high $ 50,000 area, meanwhile its fundamentals are strengthening and appear to be pointing towards a price breakout.
Analyst Ali Martinez has shared data from Glassnode to predict the timing of a new BTC price hike. According to the analyst, when the cryptocurrency passes the 1 million threshold in the Entity Adjusted Latency Flow metric, historically BTC “goes parabolic.”
Despite Bitcoin’s nearly 1,500% surge in one year, it is still below this threshold. The analyst stated:
Despite the 1,465% surge that $ BTC has experienced since the March 2020 crash, the entity-adjusted latency flow of Bitcoin has yet to pass the 1 million threshold. When and if it does, #BTC could enter a new parabolic phase recording more gains than we have already seen.
On the contrary, Martinez stated that when the Dormancy adjusted by the entity is rejected before exceeding the threshold of one million, the price of Bitcoin experiences a setback. In 2021, this happened at least twice in January and the end of February. As seen below, the cryptocurrency is close to this zone.
Bitcoin in accumulation phase
Perhaps one of the most optimistic fundamentals is the behavior of Bitcoin miners. In recent months, this sector had been selling much of its offering in BTC, increasing the selling pressure in the market.
However, analyst Lex Moskovski has shown that miners changed positions and started buying BTC to increase their reserves. Since the end of March and the beginning of April, miners have bought around 10,000 BTC. Moskovski stated:
Miners’ optimism doesn’t necessarily predict price, but it definitely removes a major selling factor from the equation.
The above goes hand in hand with a reduction in the supply of Bitcoin that remains on exchanges. Research firm Glassnode records a two-year minimum in cryptocurrency supply found on exchanges up to 2,399,090 BTC.
Analyst William Clemente has taken this data to predict a BTC supply crisis that will contribute to the cryptocurrency’s price appreciation in the third and fourth quarters of the current year. In the short term, the increase in the funding rate could give BTC the boost it needs to reach a new ATH, according to Ben Lilly, Partner at Jarvis Labs:
Jet fuel on the rise. The financing rates are restored from the fall. Now the liquidity is higher, it’s time to hit it.
BTC is trading at $ 58,150 with a sideways movement (-0.9%) during the last day. On the weekly chart, BTC has gains of 4.2% and 19.3% on the monthly chart.
BTC showing a sideways movement during the last day. Source; Tradingview BTCUSD