- Glassnode data indicates a positive investment ratio for Bitcoin and confidence in the current price of BTC.
- The chance that Bitcoin will drop to $12,000 again is considered very unlikely by analysts.
The Bitcoin rally of November has lost momentum, so the price is approaching the weekend with losses. Currently, investors seem to be more cautious, while institutional adoption remains the main driving force behind the cryptocurrency. Considering the recent price development, there is currently no consensus among analysts about the next move. However, Bitcoin continues to print bullish indicators.
At the time of publication, Bitcoin traded at $18,122 with a sideways movement (-0.7%) over the last 24 hours. On the weekly chart, the cryptocurrency is showing a loss of 5.6%, while the monthly chart is still remaining green with a gain of 18.2%.
Trader Josh Rager shows confidence in BTC’s price current levels. In his most recent analysis, Rager estimates that the price is unlikely to drop to $12,000. The cryptocurrency continues to move in higher lows levels. Investors should watch closely for $18,100 as a main support.
Rager’s feeling corresponds to a Glassnode report. According to its metrics, Bitcoin is in its green zone in the Risk Reserve metric. This indicates that investors are still confident that BTC will maintain in its current price range, as the image below shows.
The above metric also indicates that Bitcoin’s reward/risk ratio is attractive to enter a long position. Furthermore, Glassnode concludes that the increase in the Coins Days Destroyed (CDD) metric indicates that long-term investors are generating an increase in selling pressure that is pushing BTC’s price downward. Therefore, Glassnode estimates a greater volatility in the current price range and added the following:
Historically, CDD increases during bull runs, but usually peaks before the top (…) historical trends suggest that buy pressure will more than make up for this activity in the longer term.
Whales accumulate – is a supply crisis brewing?
Another bullish argument are the Bitcoin whales and their current sentiment. According to Twitter analyst “NFT_Maximalist”, whales on Bitfinex are in an accumulation phase. Therefore, he estimates that BTC will probably be able to maintain its current price range:
I don’t think we’re getting 14k or whatever crazy targets the bears have but if we go that low it’s time to go balls deep long like we’re at 10k again.
In addition to the exchanges, institutional investors and companies like MicroStrategy, PayPal, and Grayscale seem to be in a frenzy to acquire BTC. In that sense, CoinCorner’s CEO, Danny Scott, sees an increasing trend in the number of Bitcoins being withdrawn from exchanges.
Scott estimates that about $700 million have been removed off exchanges this last week. If this trend continues, this will undoubtedly have a positive long-term impact on the price of BTC, as CoinCorner’s CEO stated:
I keep repeating this, but a #Bitcoin liquidity crisis is playing out in front of our eyes. #Bitcoin removed from exchanges is continuing to drop.