Bitcoin

Will Bitcoin Price Hit $53k or $43k First? Here What Metrics Say!

Author: Elena R

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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Highlights
  • Retail traders snapped up Bitcoin amid a recent dip with net buying approximately equal to the March buying spree.

  • While the Bitcoin price was trading at $48k, the retail traders had an almost equivalent accumulation as the price was at $3800.

Cryptocurrencies have seen phenomenal growth over the past two years. Huge masses of retail traders jumped into the crypto space whilst the pandemic was at its peak during May 2020. However, roughly equivalent accumulation seems to have taken place in the recent dip. Protagonists and analysts across the space are getting obsessed with these metrics, where a cohort of them believe Bitcoin price will skyrocket. 

Retail Accumulation to Trigger March 2020 Like Bull Rally by 1000%?

Bitcoin price was hardly trading at $4000 during May 2020 whilst pandemic was at its peak. Just right there, a saga of price rally has begun. Before heading onto price rally, the asset has seen an incredible breakthrough in terms of accumulation, and somewhat equivalent purchases have taken place in the recent dip. On-chain crypto analyst Willy Woo shared interesting analytics in contemplation of the same. 

The chart by analyst depicts an influx of heaps of retail traders when the Bitcoin price dropped to $3800 in March 2020. The price has seen a prolonged bull cycle of over one year. In this phase, it has gained an upsurge of over 1000% from $3,800 in March 2020 to above $50k in May 2021. Howbeit, the flagship asset has experienced an equivalent phase of accumulation in the recent price crash below $50k. If history repeats, then Bitcoin’s market cap would become $10 trillion by the end of 2023. 

Miners Are Turning Out to Be HODLers? 

Another analytics from crypto metric platform Glassnode unveils change in the strategy of Bitcoin miners. Miners will be rewarded Bitcoin for processing and verifying trades prior to registering the transactions on the blockchain. Since March 2020, these miners are turning out to be HODLers. 

Miner’s unspent supply has kept on rising, roughly the value is now just away from 500 BTC from its ATH of 1.778 million BTC. The rise in interest suggests the future potential of the primary cryptocurrency. 

Collectively, if retail traders and miners continue to hold the asset, then we could see a prolonged bull cycle like the one we had in March 2020. Along with the on-chain metrics if market sentiments continue to favor the Bitcoin price action, then it is anticipated to become a $10 trillion asset by market cap by 2023. 

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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