Recent events have shown that a Q4 “blowoff top” is back in the cards as BTC price recovery holds onto its 23% weekly gains.
Bitcoin (BTC) is gearing up for a comeback which should lead it to repeat classic bull run years 2013 and 2017, analysts are arguing.
On July 31, local highs of $42,400 appeared. Markets are now turning back to a bullish Bitcoin “supercycle.”
2021: Bulls out
Bitcoin has been working to repair the damage caused by the China miner crash since May. However, last week’s price gains were more than expected.
Rather than suffer a serious dip, BTC price action has held onto its gains, which at the time of writing total 23% in a week.
What seemed all but impossible just seven days ago is now flavor of the month among an increasing portion of the analytical community.
“Following a troubling three months of news and price action, bitcoin went on to print five green monthly candles in a row and went up ~10x in the second half of 2013,” Jeff Ross, founder and CEO of Vailshire Capital, said in Twitter comments Saturday.
With its latest uptick, meanwhile, BTC/USD broke through its 21-week exponential moving average, something which analyst Rekt Capital described as a “time-tested bull market indicator.”
The supply shock is back
Ross said that this prediction was “just an guess,” but he has a growing number of on-chain indicators supporting him.
Hash rate is back above 100 exahashes per second (EH/s) after bottoming at 83 EH/s, while difficulty saw its first positive readjustment since the May price crash on Saturday.
The sentiment shift is further mirrored in investor behavior. The strong hodlers who have little or no history of selling BTC are now in control at levels not seen before.
“This is very bullish,” Lex Moskovski, chief investment officer of Moskovski Capital, summarized alongside an accompanying chart from Glassnode. It demonstrated hodler conviction that the BTC supply is becoming more liquid — taken off market.
“Bitcoin ‘supply shock’ is now at levels that previously priced Bitcoin at $53K,” fellow analyst William Clemente commented on the same data.