• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
bitcoin
Nexo Logo

These Two Key Factors Show “Fireworks” in the Bitcoin Market Are Imminent

Nick Chong by Nick Chong
2 years ago
in Bitcoin
Reading Time: 2 mins read
Advertisement

Bitcoin just saw a harsh $1,500 rejection at one of the most important resistance levels in the asset’s history. Though analysts remain long-term bullish, with one going as far as to say that market “fireworks” are in this market’s sights.

Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case

Bitcoin Primed to See “Fireworks,” On-Chain Analysis Shows

According to Hans Hague, a senior quantitative analyst at crypto-asset fund Ikigai Asset Management, Bitcoin is currently in ‘heavy accumulation.”

He indicated that by pointing to the chart below, showing that the Adjusted Binary BDD metric is currently showing a growing number of investors are hesitant to sell their BTC. The Adjusted Binary BDD metric’s description is as follows:

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

“Once a Bitcoin has been idle for a period of time, moving that Bitcoin “destroys” the number of days that it has accrued… One BTC held for 7 days would destroy 7 Bitcoin Days when it was moved (7 BDD)… Adjusted BDD more accurately represents the quantity of Bitcoin sold by long-term holders over time.”

Bitcoin on-chain analytics chart
Image showing the Adjusted Binary Bitcoin Days Destroyed metric alongside BTC’s macro price action. The image was shared by Ikigai analyst Hans “HODL” Hague (@Hansthered on Twitter).

The heavy accumulation is bullish in and of itself: supply is being bought off the market by long-term investors, which should result in a higher Bitcoin price assuming consistent demand.

But Hague added that with the introduction of the block reward halving that took place in May, “you’ve got fireworks.” That’s to say, in halving the rewards of miners, BTC could appreciate even faster.

Where Could These “Fireworks” Take BTC?

That raises the pressing question — where could these “fireworks” take this nascent market.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Quantitative analyst “PlanB” found that the “fair” value of BTC can be effectively related to its level of scarcity. The more scarce BTC is, the higher its fair value should be. The relationship is present on an exponential scale.

PlanB plotted this relationship and found that by abstracting time from the model, he can create a model that touts an R squared of well over 99%. The model suggests that Bitcoin will rally to a price of $288,000 within the next five or so years.

Image of a new iteration of the Stock to Flow Model from analyst PlanB. It predicts Bitcoin will reach $288,000 or so in the next era.
Image of a new iteration of the Stock to Flow Model from analyst PlanB. It predicts BTC will reach $288,000 or so in the next era.

This is a price point that has been supported by Adam Back, CEO of Blockstream, a leading Bitcoin development company.

He told Bloomberg in a recent interview that he thinks the leading crypto hits $300,000 in the next five years. Like Hague and other bulls, he also cited the halving. But Back also noted that the money printing by central banks and the overvalued nature of bonds and real estate favors BTC growth.

Related Reading: Crypto Tidbits: BTC Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps
Featured Image from Shutterstock
Price tags: btcusd, btcusdt, xbtusd
These Two Key Factors Show "Fireworks" in the BTC Market Are Near
Tags: bitcoin pricebtcusdBTCUSDTIkigaixbtusd
Tweet123Share206ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

bitcoin

Why Bitcoin Could Return To $28,000, But By The End Of 2022

19 hours ago
$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

22 hours ago
bitcoin bear

New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $19,000

24 hours ago
Bitcoin

Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry

24 hours ago
Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

1 day ago
Bitcoin

Bitcoin Sees Worst Quarter In 11 Years

1 day ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

Don’t Miss Out On Experts’ Top Crypto Picks! Gnox (GNOX), Algorand (ALGO) And VeChain (VET) Set To Lead Bullish Market

July 2, 2022

LBank Exchange Will List DEBT on July 5, 2022

July 2, 2022

LBank Exchange Will List Metavie Token (METAVIE) on July 5, 2022

July 2, 2022

Holon (HLN) Is Now Available for Trading on LBank Exchange

July 2, 2022

LBank Exchange Will List METAFASTEST (METAF) on July 1, 2022

July 2, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.