With recent consolidation and the fresh announcement from Elon Musk, Bitcoin on-chain indicator has turned bullish setting it up on a north trajectory to $85,000.
The world’s largest cryptocurrency Bitcoin (BTC) is 12% up as of writing this article aiming at a move above $40,000. At press time, BTC is trading at a price of $39,535 with a market cap of $740 billion. This recent price rally in Bitcoin (BTC) comes as Tesla chief Elon Musk said that the company will resume Bitcoin transactions once again but with a condition.
Musk’s comment came while responding to a tweet accusing him of BTC price manipulation. Sygnia CEO Magda Wierzycka accused Musk of playing around with Bitcoin price. Responding to it, Musk said:
“This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions”.
The latest announcement aka clarification from Musk comes as the Bitcoin Mining council went live last week. MicroStrategy’s Michael Saylor kickstarted the council with several North American mining giants onboard. Last month, Musk also had joined the first meeting of the council members, however, doesn’t hold any official position as of now.
Bitcoin (BTC) Indicators Turn Bullish for $85K Target
Trading suite and on-chain data provider Decentrader has pointed out three major on-chain metrics pointing out some bullish continuation for the BTC price going ahead. The platform notes that for over a month, the BTC price has spent below its 200-day moving average (DMA) of $42,000.
Decentrader also mentions some geopolitical sentiments that can play a key role in determining the BTC price movement. It notes: “Uncertainty after the recent crash and fears around President Biden’s announcement at the G7 Summit this coming weekend around how the US will tackle cryptocurrency in relation to recent ransomware attacks, are holding price down for now.”
Some on-chain indicators also suggest a potential trend reversal from a bearish to a bullish phase. As per the stock-to-flow (S2F) indicator from PlanB, Decentrader predicted that Bitcoin is back on track. The model notes that Bitcoin (BTC) is set to hit $100K by the year-end. The trading suite platform concluded:
“While we may not rally so hard and fast this time, fundamentally nothing has changed with how Bitcoin works, nothing is broken, we are just experiencing a lot of bad media coverage after a strong rally at the start of the year. So we may well see price make its way back up to the stock to flow line in the coming months. This would mean new all-time highs for $BTC before the end of this year, as the Stock to Flow line is currently sitting at $85,000.”
Over the last month, the Bitcoin whale accumulation has also gained strength. Bitcoin whale addresses with over 1000+ Bitcoins have accumulated 80,000 BTC over the last month.
? #Bitcoin whales aren’t slowing down their accumulation of $BTC, and the uptrend of tokens held by these addresses holding 1,000+ $BTC continues. This is a strong bode of confidence for #bulls, seeing top key stakeholders are increasing their bags. ? https://t.co/EpWks1TIqX pic.twitter.com/3bsprADbhI
— Santiment (@santimentfeed) June 10, 2021
Bitcoin has been recently under the environmental spotlight. Post Tesla suspending Bitcoin payments, the industry is seriously considering a move to renewables for the Bitcoin mining process.
“We received the same signal yesterday, suggesting that $BTC price was oversold relative to active addresses on-chain and could now be ready to bounce back over the coming weeks,” Decentrader stated based on the active address data.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.