Bitcoin appears to be dealing with many converging technical factors. In addition to this when it comes to fundamental factors most good news might be priced in. However, there have been some further developments on bitcoin supply constricting. This will take time to play out. However, this is likely playing into the higher lows we are seeing. The triple top is concerning and likely creating the difficult environment we are currently in for Bitcoin. Also all good things must come to an end and the 6 months of green candlesticks means we are due for a down month and this would be entirely healthy. Yet. Markets don't just move because they are due. Nothing just happens just because. Everything has a reason.
First Bitcoin will move higher and these are the fundamental factors as to why:
On-chain data shows Bitcoin miners are HODLers and accumulating
With publicly traded miners now no longer required to sell their mined BTC for liquidity they are now able to finance via stock issuance. They did sell a lot of BTC during the months of Jan - Mar but now are accumulating again. This is most likely do to the constricted supply of miners. If you can't buy miners with a backlog of 6+ months then why sell your BTC. The market could be in decline at that point which would make further capital investments not wise. And if they sell right now and the market goes higher they will be at a disadvantage in terms of fire power to buy more miners. So the main question they need to answer is this the peak? Clearly none of them think so. It is clear this headline is an indication supply of bitcoin is about to constrict even further. When you combine this with the next headline you must ask yourself. Are there more sellers than buyers. Given the H O D L mentality in the bitcoin community I would say the supply of sellers/weak hands is small relative to the number of H O D L E R S and we will see another higher low and then the final attempt at $60,000 with bitcoin finally breaking through.
U.S. Professional Basketball Club to Pay Players and Staff in Bitcoin (BTC)
With each passing week further companies and organizations come out in support of bitcoin and its adoption. There is a larger number of new entrants and also must further upside than down. With supply shrinking combine with the bitcoin community mentality and the obvious only option miners have which is to hold bitcoin until further clarity can be gained into the further and whether or not to sell. It is clear bitcoin will go higher.
Fidelity and Square Form New Council to Lobby for Favorable Bitcoin Regulations
Bitcoin continues to get longer term positive support from high profile names. This validation creates further confidence in those who H O D L as if they need any more. It is important never the less and we will continue to see resilience if these headlines continue.
$2.52B in bearish Bitcoin options signal pro traders are hedging their bets
Finally good news was weakening in terms of its impact on the price of bitcoin. With massive price target calls and further MSTR bitcoin buys and further adoption doing little to actually impact the price of bitcoin. It was clear sentiment was going to need to turn negative before we would be actually able to break through the $60,000 ceiling. Take this headline as confirmation we are very close to washing out all of those who will sell at levels between 55k and 60K. Take this as evidence we are in the later stages of this consolidation period. The final pillar is in place.
As seen in my chart we are in an upward wedge. We will bounce here. Battle back towards 60K. Break through and pop to the upper end before easing up and then boiling higher to the upper end again in which you will see corporate FOMO kick in pushing bitcoin even further.
100K is coming before July and maybe sooner.
First Bitcoin will move higher and these are the fundamental factors as to why:
On-chain data shows Bitcoin miners are HODLers and accumulating
With publicly traded miners now no longer required to sell their mined BTC for liquidity they are now able to finance via stock issuance. They did sell a lot of BTC during the months of Jan - Mar but now are accumulating again. This is most likely do to the constricted supply of miners. If you can't buy miners with a backlog of 6+ months then why sell your BTC. The market could be in decline at that point which would make further capital investments not wise. And if they sell right now and the market goes higher they will be at a disadvantage in terms of fire power to buy more miners. So the main question they need to answer is this the peak? Clearly none of them think so. It is clear this headline is an indication supply of bitcoin is about to constrict even further. When you combine this with the next headline you must ask yourself. Are there more sellers than buyers. Given the H O D L mentality in the bitcoin community I would say the supply of sellers/weak hands is small relative to the number of H O D L E R S and we will see another higher low and then the final attempt at $60,000 with bitcoin finally breaking through.
U.S. Professional Basketball Club to Pay Players and Staff in Bitcoin (BTC)
With each passing week further companies and organizations come out in support of bitcoin and its adoption. There is a larger number of new entrants and also must further upside than down. With supply shrinking combine with the bitcoin community mentality and the obvious only option miners have which is to hold bitcoin until further clarity can be gained into the further and whether or not to sell. It is clear bitcoin will go higher.
Fidelity and Square Form New Council to Lobby for Favorable Bitcoin Regulations
Bitcoin continues to get longer term positive support from high profile names. This validation creates further confidence in those who H O D L as if they need any more. It is important never the less and we will continue to see resilience if these headlines continue.
$2.52B in bearish Bitcoin options signal pro traders are hedging their bets
Finally good news was weakening in terms of its impact on the price of bitcoin. With massive price target calls and further MSTR bitcoin buys and further adoption doing little to actually impact the price of bitcoin. It was clear sentiment was going to need to turn negative before we would be actually able to break through the $60,000 ceiling. Take this headline as confirmation we are very close to washing out all of those who will sell at levels between 55k and 60K. Take this as evidence we are in the later stages of this consolidation period. The final pillar is in place.
As seen in my chart we are in an upward wedge. We will bounce here. Battle back towards 60K. Break through and pop to the upper end before easing up and then boiling higher to the upper end again in which you will see corporate FOMO kick in pushing bitcoin even further.
100K is coming before July and maybe sooner.