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BTC at $57,000: Next Journey to $65,000 May Have These Bullish and Bearish Cases

February 20, 2021 at 14:55 by Ibrahim Anifowoshe

The benchmark cryptocurrency continues to break new all-time highs with each passing day. At 14:23 GMT on Saturday, the coin was selling at $57,601, a 8.65% increase over the last 24 hours.

The current price follows Bitcoin cementing its place as the first cryptocurrency to pass a $1 trillion market capitalization. It is the sixth most valuable global asset by market cap. What makes this record important is that Bitcoin is also witnessing subdued volatility as the price trades above the $50k levels.

This comes after MicroStrategy announced that it has completed another $1 billion offering of convertible notes, which would be invested in Bitcoin. The business intelligence firm already holds $4 billion or 71,000 BTC.

Institutional investors are not stopping anytime soon. Grayscale added nearly 2,000 BTC in the last 2 days. The Grayscale Bitcoin Trust (GBTC) now has over $35 billion invested as its net assets under management.

Bearish and bullish cases as Bitcoin targets $65,000

Santiment has shared data revealing some of the bearish and bullish indicators that can determine the pioneer cryptocurrency’s run from here on.

Bullish indicators show the following:

As dormant coins move, the mean dollar invested in Bitcoin continues to drop. The network realized profit/loss for Bitcoin (BTC) is lower than its peak a week back. It shows fewer investors are interested in profit-booking than earlier.

Bitcoin Realized Profit Loss

In addition, coin supply on spot exchanges have been dropping drastically since the start of the year. Many holders are moving their Bitcoin to private or cold storage.

If this continues, Max Keiser’s $65,000  prediction, which he has now adjusted to $77,000, will come to pass. Max noted in a February 17 tweet:

I’m raising my short term BTC price target from $65K to $77K based on growing supply-shock issues — as coins are removed from exchanges My 2021 target of $220,000 remains.

DigitalCoinPrice also believes Bitcoin will reach highs of more than $86,000 by the end of this year.

The following bearish on-chain indicators may occur:

First, long traders are paying a premium to short traders to keep prices higher. The Santiment report shows Bitfinex funding rate stays at a very high percentage of longs.

On the flip side, Bitcoin whale addresses have been on a steady decline since BTC crossed $45,000 levels on February 7. It suggests that whales are profit booking with every surge.

Despite this, data from Glassnode shows that there are still over 100,000 addresses with more than $1 million worth of Bitcoins.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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