Bitcoin hit $ 57,000 on March 11, just below its all-time high, after falling to a low of $ 43,000 in February. Today the coin hit $ 62,000. With Bitcoin managing to regain the lost ground in such a short period of time, analysts remain optimistic about the future of the asset’s price.
While Bitcoin quickly regained much of its price loss after its initial crash in 2017 – only to lose more than 80% of its value in the weeks later – there is reason to believe that this time is different.
Bitcoin on chain analysis
Bitcoin analyst Willy Woo believes the 5% of total supply bought over $ 53,000 (with a market valuation of $ 1 trillion) is a strong indicator of optimistic sentiment among retailers and institutional traders.
Bitcoin is back at almost the highest level ever. You can find solid support on the chain down here.
Graphic: Shows how many coins have been bought by current investors at each price. A nice confirmation of the validity of these price levels. pic.twitter.com/doKo5mCvp5
– Willy Woo (@woonomic) March 11, 2021
Investors apparently hadn’t panicked from the slump and took the opportunity to accumulate another ~ 900,000 BTC.
The analyst also points to 35% of the total supply bought in the past three months. This suggests that the market believes that BTC is at least still an undervalued asset – or an alternative to the currently volatile stock market.
Technical data indicates that there is room to grow
On technical indicators, according to Central Charts analysis, BTC broke its horizontal resistance on the weekly timeframe – another bullish signal. Bitcoin has also seen a breakout in price channels, typically followed by a dramatic appreciation in the market value of assets.
While this is not a guaranteed move, these two technical indicators used in conjunction with the rapidly declining supply of BTC at the current price level show that there is reason to be optimistic about the coin price.
Bitcoin price movement over the past week has also made waves as it significantly outperformed the QQQ NASDAQ technology index over the period. The QQQ was down 1.72% while Bitcoin was up 15% from March 1st to 11th.
Bitcoin is usually at least somewhat correlated with movements in the U.S. tech stock market, but with increasing fears of increased inflation – money has fled traditional technology into other assets like Bitcoin.
Should this trend continue, Bitcoin will continue to be viewed as a store of value against inflation and other macroeconomic threats.