Bitcoin continues to consolidate in the high $ 50,000 area as its fundamentals improve and indicate a price breakout.
Analyst Ali Martinez exchanged data from Glassnode to predict the timing of a new BTC price rally. According to the analyst, BTC historically goes “parabolic” when the cryptocurrency crosses the 1 million threshold in the metric entity-adjusted idle flow.
Despite Bitcoin’s nearly 1,500% surge in a year, it’s still below that threshold. The analyst stated:
Despite the 1,465% increase that BTC has seen since the March 2020 crash, the Bitcoin Entity-Adjusted Dormancy Flow has not yet exceeded the 1M threshold. When and if so, #BTC could enter a new parabolic phase and post more profits than we have already seen.
Conversely, Martinez explained that if the entity-adjusted dormant period is rejected before the one million threshold is exceeded, the price of Bitcoin will see a decline. In 2021, this was the case at least twice in January and late February. As can be seen below, the cryptocurrency is located near this zone.
Bitcoin in an accumulation phase
Perhaps one of the most bullish fundamentals is the behavior of Bitcoin miners. In the past few months, this sector had sold much of its supply in BTC, adding to selling pressure in the market.
However, analyst Lex Moskovski has revealed that miners have changed positions and bought BTC to increase their reserves. Since late March and early April, miners have bought around 10,000 BTC. Moskovski stated:
Miners’ optimism doesn’t necessarily predict price, but it definitely takes an important sales factor out of the equation.
This is related to a reduction in the supply of Bitcoin on the exchanges. The research company Glassnode has recorded a two-year low in the supply of the cryptocurrency on exchanges down to 2,399,090 BTC.
The analyst William Clemente used this data to predict a BTC supply crisis that will contribute to the appreciation of the price of the cryptocurrency in the third and fourth quarters of the current year. In the short term, the increase in the BTC funding rate could give BTC the boost it needs to achieve a new ATH, says Jarvis Labs partner Ben Lilly:
Jet fuel up. The financing rates have been reset due to the decline. Now the liquidity is higher, time to beat it.
BTC is trading at $ 58,150 on the last day with a sideways movement (-0.9%). BTC has gained 4.2% on the weekly chart and 19.3% on the monthly chart.