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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.

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