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31.08.202114:50 Forex Analysis & Reviews: Bitcoin: hash rate recovery and holders' activity indicate growth

Growth is still difficult for Bitcoin. The sideways consolidation continues without changing the previous long-term forecasts. But two local consecutively declining highs on the daily chart create prerequisites for a deeper downward correction to the level of 44,807.24. Or the continuation of consolidation in the sideways between the lows of August 26 and the highs of August 23 ($46,000-$50,000 per coin).

Nevertheless, this step back of the main cryptocurrency is not intimidating from a long-term perspective.

Network analyst Willy Woo now predicts that Bitcoin will "go crazy" in the coming months as long-term holders continue to accumulate it.

In a new episode of the What Bitcoin Did podcast, Woo says long-term holders who have held the coins for at least five months will announce their presence soon.

"This is a macrocycle. You might have seen a similar situation at the bottom of 2015, 2014. You saw it during the 2019 lows, and in fact, you saw it during 2020. There was the Covid-19 crisis. Michael Saylor collected all the coins, and this was another peak in the accumulation of long-term holders. By next month at current rates, we will peak. "

By peak accumulation, Woo means a "white bar" followed by a run-up. The last acceleration from $10,000 to $60,000 began in October 2020. A few months before, the crackdown was from $4,000 to $14,000. So if we see a peak in October, then Bitcoin may start a new acceleration.

Woo draws his conclusions from network data and believes this cycle is different from the 2013 bull market. According to Woo, he doesn't believe the current bull race will end in one massive impulse.

Let's look at the situation from the other side - from the side of the hash rate renewal. After the collapse of the Chinese repression, CryptoQuant analysis showed that Bitcoin's hashrate is now recovering "well" and that miners are still in net accumulation.

The steadily growing hash rate and the net accumulation of miners are signs that they expect the price to rise.

Thus, growth to the historical maximum is possible, but how much longer Bitcoin will have to mark time, consolidating in narrow ranges, is difficult to say. And it is not necessary. But if the price of BTC/USD falls to the level of 44,807.24, marked with the lower blue dotted line, then when it reverses upwards, a good buy entry point is likely to form for both short-term positions and longer trades.

Exchange Rates 31.08.2021 analysis

*Prezentowana analiza rynku ma charakter informacyjny i nie jest przewodnikiem po transakcji.

Ekaterina Kiseleva,
Ekspert analityczny InstaForex
© 2007-2021
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