New Report says Bitcoin (BTC) Price could Hit US$85,000 in Coming Months as soon as Indicators Turn Bullish
On-chain data indicate that the Bitcoin price against the US Dollar is on its way to recovery, which is very similar to the trend as seen in December 2018 and March 2020. This report has pointed out that the price of BTC is still below a major moving average. Though it is “not a bullish sign”, it is definitely a sign of rebound.
Trading suite Decentrader has highlighted 3 on-chain indicators in its latest market update, which was released on June 11, 2021. These indicators have called for an imminent bullish continuation for Bitcoin price against the US Dollar.
Decentrader has warned that the BTC price is below the 200-day DMA (Day Moving Average) even after a month. It summarized:
“Bitcoin has kept the market on its toes as it continues to range between weekly support at $32,000 and near term resistance of the 200DMA currently at $42,000.”
During the weekend, the Bitcoin price continued to trade within the range from US$36,000 to US$40,000. At press time, the BTC price is hovering around US$39,565.12. It said:
“Uncertainty after the recent crash and fears around President Biden’s announcement at the G7 Summit this coming weekend around how the US will tackle cryptocurrency in relation to recent ransomware attacks, are holding price down for now.”
Several measures of on-chain strength now suggest that the market is currently in the phase of turning bullish from a bearish phase.
SOPR (Spent Output Profit Ratio) as well as stock-to-flow deviation are indicating towards a resurgence. SOPR indicator is currently in the same position as it was when the BTC price rebounded after hitting the floor in December 2018 and March 2020. The report update pointed out:
“We received the same signal yesterday, suggesting that $BTC price was oversold relative to active addresses on-chain and could now be ready to bounce back over the coming weeks.”
Decentrader predicted that the price will again be on track to bullish momentum within a matter of months. It concluded:
“While we may not rally so hard and fast this time, fundamentally nothing has changed with how Bitcoin works, nothing is broken, we are just experiencing a lot of bad media coverage after a strong rally at the start of the year…So we may well see price make its way back up to the stock to flow line in the coming months. This would mean new all-time highs for $BTC before the end of this year, as the Stock to Flow line is currently sitting at $85,000.”
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