Here’s Why Market is Expecting is an “Explosive Move” in Bitcoin Soon
For the past few weeks now, bitcoin has been trading like a stablecoin. The world's leading cryptocurrency continues to hover around $9,200 on the back of the extremely low volume.
The bitcoin has not only been quiet but too quiet.
enjoy the silence, $btc will soon change that
— CryptoYoda (@CryptoYoda1338) July 15, 2020
Amidst this, trader Crypto Yoda notices that Exponential Moving Averages (EMA) is making some moves as well, and “if the bullish trend is to be resumed, this is the time.”
Weekly EMAs: crossed up, 3d EMAs: crossed up, Daily EMAs: crossed up, 4h EMAs: bundled at the current price, 1h EMAs: bundled at the current price, 15m EMAs: bundled at the current price.
“Bitcoin is so compressed that any break likely will get the dominoes falling. Even intraday stop clusters hitting should be enough to carry into the longer-term position areas to get the cascade going,” said trader Cantering Clark.
Meanwhile, according to PlanB, who used the S2F model to determine Bitcoin’s price, it is “time to sit back, relax, and watch this show.”
Bitcoin price might be currently down 54% from its all-time high, but other fundamentals like hash rate recently hit a new peak, canceling any plans or worries of a miner death spiral.
As we reported, the network difficulty also reached a new high just this week, that too just two months post-halving.
Amidst this, investors are moving their BTC out of exchange wallets at a rapid pace while investors continue to pile into BTC with the number of addresses with 0.1 BTC making new highs.
The exploding growth of stablecoins also suggests that a lot of money is sitting on the sidelines, ready to jump in. In just four months, after the March sell-off, stablecoin supply has doubled to $12 billion, with Tether’s supply officially surpassing $10 billion.
Not to forget all the money printing the central banks are doing. “The key theme is the virus is over-rated yet central planners will continue to deliver stimulus. The Fed, in particular, has a LOT of room to increase monetary issuance, and US politicians will give us more free money,” said economist and trader Alex Kruger.
With all this dry powder and ongoing accumulation in the macro backdrop of inflation and massive expansion of the Fed’s balance sheet, bitcoin seems to be the “logical choice.”