Even though Bitcoin hasn’t been making any big moves of late, the market’s bullishness on the coin continues to make headlines, and for all the right reasons. After all, the king coin stunned the market at first, largely with its moves that silenced the skeptics.
Bitcoin to $100K by the end of the year, a much-awaited move by the market. As we enter the final quarter of this year, Bitcoin is expected to push towards that major psychological hurdle. However, even though bitcoin presented a solid recovery from the May crash, at the time of writing, the effects of the September 7 flash crash were not completely over.
Nevertheless, as BTC posted a nearly 3% daily gain and traded at the $48.5 level at press time, the market is once again looking at BTC for some major moves. But before bitcoin actually moves towards $100K, its final stop would be the $85K mark which would confirm an upward move to $100K.
The above observation a. This was part of a market report by trading platform Decentrader, which presented bullish signals in the near term for BTC. This presented how we can set it up for a bigger run that first reaches $85,000 before breaking the $100,000 psychological barrier, creating an explosive Q4 2021.
BTC Looks Hyper Bullish
Despite BTC trading below $50K throughout the week, on-chain metrics have prompted analysts to remain optimistic on bitcoin price action. A report said that the ever-decreasing supply of BTC on exchanges put pressure on the prices in the medium term. An increase in demand will cause a decrease in supply to increase the price.
Furthermore, another factor contributing to Bitcoin’s bullish mid-term trajectory was its SOPR which presented a similar trend in the months following the March COVID crash. After the summer crash, where SOPR was printing a huge amount of green candles, some minor selling was seen on this pullback in losses beyond $50,000. Thus, the SOPR kind of offered a buy-back opportunity as the last sellers exit before moving higher, as seen in Q4 2020.
Additionally, the Active Address Sentiment indicator had reset with a lower price change than the Active Address Change. With continued network growth as well as a drop in prices, the market will try to catch up with the network development keeping in mind the price increase.
Thus, the report presented an ultra-bullish prospect of bitcoin reaching $85K by the end of Q4. However, the bitcoin options market was not looking too big on gains at the moment, with the funding rate shining a negative sign. Furthermore, the close of the global open interest of BTC indicates that the year end is expected to be around $65K, which is about $20K less than the target of $85K.
Actually it is not so. This is because, around $30K bitcoin recorded a nearly 75% gain from its July local lows and reached multi-month prices of over $52K. Another 75% price gain will push Bitcoin to $85K, especially from the current consolidated price. So such a rally in the next three months will not be a big surprise.
Thus, while BTC was consolidating, a squeeze upward should occur for the remainder of this year, similar to events in 2020.