Bitcoin price has gone more down south than it has risen up for quite a few weeks now. The volatility turmoil hasn’t let the price rise above $42K and currently the price is fluctuating in the $30K – $36K range.
But, the investors might just want to hold their horses now as there are signs for price recovery in the near future
Here are some factors indicating a price rise in the days to come.
Roof hitting Inflation
The coronavirus pandemic has accelerated the Inflation and how. The devaluation of fiat and increased liquidity in the markets will help push Bitcoin’s price higher. And Here’s how – The big institutions who have loads of cash to invest will now see Bitcoin as a potential investment option for sure. Hence, we can hope to see some huge Bitcoin investments in the near future.
Here’s what Mixo Das, an equity strategist at JP Morgan told Bloomberg about inflation
“Policymakers have committed to accepting a higher level of inflation, higher volatility in inflation and as that happens you will see inflation moving structurally higher”,
Now you know it’s serious.
Old hands are buying the dip
Although Bitcoin has seen terrible falls in the past few weeks it’s only the new buyers who have been selling their stack.
The recent data by Glassnode (on-chain monitoring resource) suggests at present levels the old hands are adding more tokens to their stack and newbie buyers are continuing to sell.
This fall is being termed a great accumulation phase by some in the market. Following the suit, the Miners too are continuing to buy.
All of this is a probable sign that the bull market will be back soon.
Analyst Lark Davis had this to say about the report by Glass node.
Healthily negative funding rates
For some context, exchange funding rates are an example of concealed bullishness that could be used to analyze near-term price movements.
The rates are now said to be healthily negative, implying that it’s very much a matter of shorts playing longs in the current environment.
“Open interest has failed to recover with leverage participants being largely wiped out in the sell-off and not re-enter. Funding has also remained low/negative which further echo’s the market,”
This effectively means Bitcoin will witness a sustainable price growth driven by actual demand from long-time Bitcoin HODLers rather than short-term entrants.
Conclusively, although this has been the worst may ever since 2018 for Bitcoin proponents, there’s still a definite chance for the prices to rise high and maintain stability in days to come.