The leading metrics related to supply/demand and accumulation by Bitcoin whales are bullish and indicate the recent rally has led to upward signals. Rodríguez said that hodlers usually accumulate more when Bitcoin is correcting or accumulating, to which he suggested paying attention.
The price of Bitcoin has been recovering after it dropped to USD 55,600, leading to believe it has reached the bottom of the decline. BTC is currently trading at around USD 57,034, and its daily trading volume is above 31.8 billion, according to CoinGecko.
The sentiment of the market has already gotten out of the extreme fear terrain of recent days. For that reason, it now supports the short-term bullish view.
A weekly summary by CryptoQuant shows that the main metrics related to coin supply/demand and accumulation by whales are bullish. They also review technical indicators, mostly neutral, but the recent rally has led them to show upward signals.
Short-term market sentiment was bearish, but the buying pressure is trying to remove this bias.
The Price of Bitcoin Could Reach USD 98,000 in Late November, Said PlanB
Renowned analyst PlanB recently predicted that the price of the first cryptocurrency in the market could reach USD 98,000 in November. However, many of his followers on Twitter believe that that value is unrealistic after it dropped by more than 20%.
According to PlanB’s model, the price of BTC will take advantage of a six-digit territory by the end of the year. His most optimistic prediction is USD 288,000, contrary to the worst-case scenario, not based on the S2F model. He also considers BTC will be above USD 100,000 by the end of 2021, but the December target is USD 135,000.
Hillary Clinton States that Cryptocurrencies Could Weaken the US Dollar as a Store of Value
Hillary Clinton, former US Secretary of State, recently called out against cryptocurrencies and warned states to monitor their growth. She makes those comments because of the controversial cryptocurrency tax reporting requirement in the USD 1 trillion infrastructure bill signed off by President Joe Biden.
The bill states that exchanges will have to disclose to the Internal Revenue Service (IRS) the names, addresses, phone numbers, profits, and losses of customers. Besides, it also indicates that those entities receiving cryptocurrency payments above USD 10,000 will have to reveal the sender to the government.
A Graph Indicates that Hodlers Own 70% of Bitcoin Tokens
Cryptocurrency analyst Juan Rodríguez, also known as Bitcoin Dad, recently explained Hodl waves on a graph. He said the amount of Bitcoin of users determines the group of holders to which they belong.
He highlighted that 30% of Bitcoin tokens are in the hands of novices (those buying and holding them from one week to six months). Meanwhile, hodlers (those accumulating Bitcoin for more than six months) have the other 70%.
Hodlers usually increase their accumulation when Bitcoin is correcting or accumulating, to which Rodríguez suggested paying attention. He highlighted that many novices tend to buy the cryptocurrency when its price increases. Those two perspectives can help investors determine some particular action related to the market.
He also said that accumulation levels are rising since hodlers estimate that the cryptocurrency is currently cheap to buy. Finally, he suggested that the best investment strategy is to Hodl Bitcoin.
By Alexander Salazar
