Bitcoin: Expecting a new rally

17 Aug, 2022

Start date

06 Sep, 2022

End date

27 470

Target Price

Buy

Tip

Instrument: BTCUSDT

Make money on an idea!

Bitcoin is currently about 75% lower than its November 2021 high. However, cryptocurrency prices have seen a sustained recovery in the past two months. The crypto market

Bitcoin is currently about 75% lower than its November 2021 high. However, cryptocurrency prices have seen a sustained recovery in the past two months. The crypto market pioneer asset's movement, coupled with signals from on-chain indicators, allows us to say that a bottom is forming right now, and a new wave of growth can be expected soon.

Analyst's technical analysis background of the idea

We recommend buying the BTCUSDT at 23215, with a price target of 27470 and a Stop Loss set at 20470.

Analyst's fundamental analysis background of the idea

In the first ten days of August, the crypto market's Fear and Greed Index left 'extreme fear' territory, rising to 42. Essentially, this makes it possible to assume that traders are willing to buy more.

According to data from Glassnode, 90-day cumulative realised loss exceeded 3 million coins. This is the third time this has happened in Bitcoin's entire history (the red arrows on the figure). The first two times ended in a bull rally. That's why we can assume that this time, the situation will unfold in a similar way.

90-day cumulative realised losses denominated in Bitcoin
Glassnode

The online indicator Realised HODL Ratio, which evaluates the ratio of coins' market capitalisation of coins that haven't moved in the network over the past week and those that have been idle for more than one year but less than two, is at the lowest level in more than three years. The indicator nearly entered the oversold zone, which confirms the formation of a bottom and the potential for the beginning of an upward phase.