Bitcoin has moved up from every major level of resistance in the past month. At the time of writing, BTC is trading at $ 48,412 trading with a gain of 3.8%.
BTC on a rally in the daily chart. Source: BTCUSD Tradingview
After weeks in the green, the general sentiment in the crypto market has turned decidedly optimistic as sellers appear exhausted and unable to continue their attack.
Director of Global Macroeconomics at investment firm Fidelity Jurrier Timmer believes Bitcoin could hit previous highs and return to pricing. In a thread posted on Twitter, Timmer compared the price of BTC at different historical points in time.
As can be seen below, Bitcoin’s current price action is “similar” to the experience in the sales phase in February and April. At that moment, the price of BTC appeared to be stuck, but eventually moved up. Timmer said:
With the recent rally, Bitcoin’s market capitalization is approaching old highs. If we add the rest of the crypto space, we got a market cap back of $ 2 trillion. This is no longer a sideline, folks.
Source: Jurrien Timmer, Fidelity
Many experts believe that the macroeconomic environment has favored bitcoin, gold, and risk assets that can generate returns for investors. With this in mind, Timmer compared BTC’s 1970 performance to gold.
As can be seen below, the cryptocurrency and the precious metal behaved similarly. Although the expert made it clear that this prediction is “very subjective”, it could be an indication of a future appreciation as BTC takes over the market share from gold. Timmer added:
In fact, the fundamentals of Bitcoin (its network) are constantly improving. At its peak, there were 34.3 million addresses (with at least $ 1). That number dropped to an all-time low to 31.8 million and has now risen back to 33.5 million
Source: Jurrien Timmer, Fidelity
Strengthening Bitcoin Foundations Towards $ 100,000?
Timmer introduced a demand model based on an S-curve pattern, which is used to determine the level of adoption of a technology, and a supply model, similar to the stock-to-flow of Plan B.
At the third market capitulation in mid-July, this model overlapped and created a “good basis for consolidation”. Next, these models will overlap, Bitcoin will stand at around $ 100,000 as the graph shows.
Bitcoin’s hash rate is rising from the abyss (after China’s mining ban), although it remains well below its peak. Higher prices will likely fix this as mining follows demand.
Another upward trend for the price of BTC in the long run, argued the expert, is the exodus of miners from China. As the main driver of the recent selling pressure, this event has made the cryptocurrency’s energy usage much cleaner and could inspire new inventors to enter the crypto market.
The surrender events that drove Bitcoin from an all-time high of $ 64,000 to its annual low of around $ 29,000 will have a positive impact. The expert claimed that short-term investors lost market share to long-term investors or Hodlers.
According to Timmer, the latter made up around 12% of the market. The expert said:
I’m impressed with how resilient Bitcoin and the crypto space in general were during that 55% correction. The speculators (tourists) have been crushed in drawdowns as usual and now only make up 17% of the market. This level coincides with previous lows.
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