|

Bitcoin price shrugs off bears, prepares for 37% breakout

  • Bitcoin accumulation is at a similar position as it was in the 2017 bull run ahead of a parabolic BTC price rally. 
  • Bitcoin price has recovered from a drop below $55,000, posting over 6% in profits overnight.
  • Buyers stocked up at $53,000 as the asset remained attractive to traders and investors. 
  • Analysts have predicted a climb to $79,000 in the ongoing Bitcoin bull run, remaining bullish on the asset’s price trend. 

Proponents draw parallels between the Bitcoin price trend and the historic bull run in 2017 before the all-time high. Similar movements in BTC price are seen supported by SMA and Fibonacci levels. Bitcoin accumulation across exchanges continues, in sharp contrast to the 2017 bull run. 

Bitcoin price recovers from seismic crash, mimics 2017 price rally

Ahead of the parabolic Bitcoin price rally where BTC hit a new all-time high above $19,000, the accumulation was at a similar position as observed in the ongoing bull run. Bitcoin price made a comeback from the drop below $55,000 and gained 6% overnight. 

Except for May to July 2021, Bitcoin exchange balances continued to drop in the ongoing cycle. More Bitcoins were scooped off of exchanges in the recent dip, and this was in sharp contrast to the 2017 cycle, where BTC started flooding exchanges once the price rally started. 

Bitcoin net position change is an indicator that measures the total inflow/ outflow of BTC across exchanges as a moving average for the past two weeks. A net outflow is considered a bullish sign for Bitcoin price. 

Bitcoin: Exchange Net Position Change

Bitcoin: Exchange Net Position Change

Despite “Extreme Fear” on the “Fear and Greed Index,” considered an indicator of traders’ sentiment on a scale of 0 to 100, buyers stocked up Bitcoin at $53,000. 

Pseudonymous cryptocurrency analyst and trader @bloodgoodBTC has set a target of $170,000 for Bitcoin price. The analyst observed BTC accumulation and noted that it was supported by his analysis of SMA and Fibonacci levels. 

Bitcoin’s drop below $55,000 was a 21% drawdown from its all-time high, one of the least severe corrections noted in 2021. @_Checkmatey_, a cryptocurrency analyst, concludes that Bitcoin is not in a bear market yet as the drawdown is one of the lowest ( when measured from the latest all-time high ). 

FXStreet analysts have evaluated the BTC price trend and predicted a drop to $53,000 where the asset would collect liquidity. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Meme Coins Price Prediction: Dogecoin, Shiba Inu, Pepe rally on Venezuela’s shadow BTC reserve

Meme coins such as Dogecoin, Shiba Inu, and Pepe are leading the cryptocurrency market rally driven by the US cross-border operation to capture Venezuelan President Nicolás Maduro. Dogecoin extends its gain for the fifth consecutive day while SHIB and PEPE take a pause.

Cardano Price Forecast: ADA breaks above falling wedge, upside constrained by geopolitical risks

Cardano (ADA) steadies above $0.40 at the time of writing on Monday after a decisive close above the falling wedge pattern in the previous week. The derivatives market supports improving sentiment, with ADA’s Open Interest rising and long bets increasing among market participants.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – Bulls firmly in control as BTC breaks $93K, ETH and XRP extend gains

Bitcoin, Ethereum, and Ripple extended their rallies on Monday, gaining more than 4%, 6%, and 12%, respectively, in the previous week. The top three cryptocurrencies by market capitalization could continue to outperform, with bulls in control of the momentum.

Top Crypto Gainers: Brett, Bonk, Dogwifhat – Meme coins rally amid US-Venezuela tensions

Meme coins, including Brett (BRETT), Bonk (BONK), and Dogwifhat (WIF), lead the crypto market rally with double-digit gains over the last 24 hours following the US capture of Venezuelan President Nicolás Maduro on Saturday. Technically, meme coins could extend gains as bulls maintain firm control.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.