Bitcoin is preparing for a new supercycle
After two months of consolidation, a fake news impulse was enough for Bitcoin to climb to its key resistance level. Recent metrics indicate a swift breakthrough above $40,000 in the near future.
On Sunday, the City A.M. in London published an 'inside' report about Amazon's plan to include bitcoin in its list of accepted payment methods. The news led bitcoin to its best movement in the last six months, surging 14% in 12 hours. The refutation published later didn't cause BTC to retrace its rise, which implies increased interest in this cryptocurrency and high growth potential. There was the biggest one-day bitcoin withdrawal from exchanges in the past 12 months, with 57,000 BTC being moved to cold wallets on 30 June.
Analytical agency Stack Funds points to the similarity between the derivatives market in its current cycle with what was happening in Q4 2020 when bitcoin showed threefold growth after a prolonged consolidation. Analysts remain cautiously optimistic regarding the start of a new supercycle.
There's active resistance between $41,000 and $43,000, where substantial volumes have been accumulated, including bearish hedge orders. A breakthrough above this level will open the path towards $50,000.
A growing interest in bitcoin is also seen in the increasing number of users. From the nine-month period between May 2020 and January 2021, the audience grew from 65 million to 100 million. Just six months later, it grew again from 100 million to 221 million people.
The number of crypto users continues to grow despite regulatory frameworks becoming stricter in some countries and China's crackdown on miners. The bitcoin network's hash rate has already started to recover, and the coin's price is rising again. The time for a new supercycle may have arrived.
The StormGain Analytics Group