Bitcoin reached its new all-time high of $58,300+ in mid of February (22/02/2021), after that it dropped around 25% and used support at $45500 in the last week of February. With the start of the march, the price was again in the upside direction. At the time of writing this, the price of BTC is around 55000. The first two weeks of March are indicating a positive direction for bitcoin.
The price drop has turned into a healthy correction in bitcoin and its on-chain fundaments are getting even stronger.
Active addresses:
We all know the proverb “History tends to repeat itself “. Comparing the number of active address during the end of 2017 and 2021, we can see similar spikes. In the first quarter of 2017, there was a huge spike in the active address and bitcoin did break its ath of 2014 in that surge. Later after a quick correction bitcoin went on to create new all-time highs as it moved on for the year.
- Current stats are similar to that of 2017, thus there are high chances for bitcoin to test the above support and resistance for few weeks and then start up a new bullish rally.
Balance on exchange:
- There is a significant drop in bitcoin balance on exchanges, this indicates a bullish signal as most of the entities that own bitcoin are HODLing. They are decreasing the supply of bitcoin available in the market. The resulting scarcity will drive the price of bitcoin upside.
MVRV RATIO:
- THE MVRV ratio is not very high nor is it too low. This shows that for coming week’s bitcoin will not see a very high buying or selling pressure. However, gradually the price of BTC will go up as the current price of BTC is fair price by MVRV ratio and scarcity of coin due to HODLers as well as only 3.5 million out of 21 million BTC are left to mine.
From Willy woo:
As the current price of BTC is turning into a fair price, more and more investors have started to buy bitcoin, which will significantly increase the value of Bitcoin.
Conclusion:
BTC has consolidated a major correction and is possibly going to make Bull Run. BTC can create a new all-time high and then again make the current price its support. BTC has heavy on-chain support for starting up a bullish rally in future.
