What’s the Point of No Return for Bitcoin Price?
The price of Bitcoin is keeping around $37,000 with a ‘real’ volume of $7.5 billion, less than what is seen by Ethereum’s $8 bln as the second-largest cryptocurrency caught up and hit a new all-time high today at $1,440.
Bitcoin’s consolidation in the $30k-$40k range has allowed altcoins to rally — as seen in Bitcoin dominance, which has dropped 10.7% since the beginning of this month.
However, the market is still expecting Bitcoin to see another pullback to $30k, and if it is breached, $27k could be touched but briefly.
For the leading cryptocurrency to reach the point of no return, to mark the phase transition, the price needs to jump to $48,000, as per PlanB’s stock to flow model, which puts the target price of Bitcoin around $288,000 for this cycle.
A larger monthly jump to #bitcoin $48K would create a nice gap between monthly dots. These gaps usually mark the point of no return (red arrows), i.c. the phase transition to #phase5 pic.twitter.com/p38mXtBSm6
— PlanB (@100trillionUSD) January 19, 2021
The open interest in the bitcoin futures market has also reached double-digit billions, with OI in options growing even faster.
While the price is taking a breather, the demand for Bitcoin is still strong, with Grayscale making one of the biggest BTC purchases, 16.24k BTC on Monday.
Additionally, the number of addresses holding at least 1000 BTC has been skyrocketing lately. Last year, from January to December, these addresses saw a growth of 6.7%, and since Dec. 2020, this has already spiked 7.2%.
Active addresses are also making new records on the Bitcoin blockchain, with the number of active addresses pushing above the 2017 peak.
Additionally, Stablecoins are recording continuous growth, with the total market cap now exceeding $30 billion.
Tether maintains its dominant position in the market by accounting for nearly 75% of total stablecoins in circulation. But Coinbase and Circle’s USDC fiat-backed coin is growing fast. With its market cap hitting $5 billion for the first time, USDC has grown nearly 20x since Jan. 2019 compared to 12x growth seen by USDT.