While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
According to several on-chain features, the possibility of Bitcoin heading towards a significant price boost is still in the game. Miners have ceased disposing of their coins, including long-term hodlers. The Stablecoin Supply Ratio has also dropped substantially recently.
Apart from being the root of the Bitcoin network, miners also have a notable role in the underlying asset price. For example, they can negatively impact BTC’s price when they finally sell off massive portions.
This was the case at the beginning of the year when BTC firstly breached $40,000. After that, however, reports represented their sell-offs, which caused an immediate market correction.
BTC had been trading in a symmetrical triangle since getting a local low on May 19. On June 3, it recovered, reaching a high of $39,476 shortly after.
However, it has been dropping since, falling back inside the triangle (red icon).
Recent on-chain data shows that miners have stopped selling. According to CryptoQuant, miners have disposed of more significant portions in mid-May, during the latest market crash, but are currently holding their bitcoins.
Drops and Rallying Sessions
A recent tweet by PlanB, a lead crypto analyst and creator of the BTC stock-to-flow model, showed a chart of this year’s BTC price action marking periods of drops and rallies. They all present a similar V-shape recovery pattern.
The most significant drop has occurred between May 12 and 19. This is where bitcoin dropped from about $57,000 to a low of $30,000.
PlanB marked this area as the most extended isosceles triangle putting a question mark on it, wondering whether history would repeat itself.
If that were to happens, the coming period could see the price of the primary crypto spike by over 50%.
Bullish for BTC’s Price
Using data from Glassnode, Lex Moskovski, the CIO at Moskovski Capital, indicated that the hodlers selling pressure is the lowest since November. He believes such investors are unwilling to sell at that price now. Ultimately, Moskovski concluded that this is “bullish” for the cost of Bitcoin.
However, it’s good to note that the price action to date in 2021 was most likely following the Wyckoff distribution pattern. Thus, on completion, one expects not an immediate recovery back to the highs but rather a long accumulation period.