Bitcoin news

Bitcoin showing similar signs to 2019 surge from $3,150 to $14,000



In a recent record, market data indicated that a majority of investors had no intention of selling their Bitcoin at the current $ 9,400. The Bitcoin Investors are actually moving their Bitcoin holdings from exchanges. As a result, trading firms are reporting a low Bitcoin reserve where leading crypto exchanges are reported to hold around 1.36 million Bitcoin that are worth $12,880,000,000. This was the same case back in 2019 where the there was a surge of the Bitcoin and major trading firms had low bitcoin reserves, at that time the dominant cryptocurrency surged from $3,150 to $14,000.

Investors keeping their bitcoins away from exchanges

In order to evade the risk of losses, investors are moving their funds out of the exchange because the inflow of the bitcoin exchange is declining. According to reports, in the first quater of 2019 the price of bitcoin was between $3,150 and $4,500 for almost three months. Within these three months, the bitcoin recorded a 250% surge with an increase from $ 4,000 to $ 14,000.
Currently, with the bitcoin price at $9,500 a majority of the investors are not willing to risk selling their Bitcoins at the range of $9,500 to $10,000. Hence, fewer investors are willing to deposit their Bitcoins on trading platforms especially with the low inflow of bitcoin for past 12 months.

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Indicators point to potential bitcoin price surge

It is reported that long term indicators had already signaled the start of a new uptrend. Indicators like the Macro indicators and the Puell Mutiple show that the Bitcoin is on the verge of a bull run. The Puell Multiple is a metric that highly considers the circulation of supply where it looks into a miners revenue to check if bitcoin is oversold or overbought. Currently the indicator is hovering at 0.4, while in 2019 when the Bitcoin price was $ 3,150 it had dropped to 0.3. In addition to that the Puell Multiple indicates thet the Bitcoin will experince a pullback in the short term and will experince a rally in the short to medium term.
Recently, Bitazu Capital who is the founding partner of Mohit sorout reported that the Bitcoin has also recovered rapidly from a steep sell-off recording its seventh golden CrossOx in history. A golden cross is recorded when two long term exponential moving average lines cross. However, there is a diffrence between the 2018 rally and the 2019 rally. The 2019 rally reported a higher number of investors and institutions as compared to future market investors trading with high leverage.

Image courtesy of Flickr



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