In a tweet on the 6th. April PlanB said buyers can now continue to accumulate BTC with confidence.
PlanB: It is probably time to buy in Q2
BTC/USD struggled with a lack of momentum over the weekend, peaking in a dip to near $56,000. The resistance near the all-time high of $61,700 is now at the lowest level since reaching that level, now it might pay to be bullish.
In addition, many indicators within the chain suggest that sellers have exhausted themselves. Bitcoin investors are using an existing narrative that favors hedging over short-term trading or selling as their primary strategy.
Now that all the Pi-Cycle, Wave, Rainbow and NUPL fans have sold their bitcoins, it’s probably time for institutions to start buying again in Q2, PlanB writes, highlighting four metrics.
Among these, the so-called Rainbow price chart, which ranks spot prices based on investor sentiment, was very favorable this week for hedging and buying more BTC at current prices.
An interesting comparison is made with the top of two previous bull markets, in late 2013 and late 2017. The rainbow then signals the formation of a bubble top, meaning Hodler should take his profits. Since the current value is far from such a peak, the indicator suggests that the top of the upward cycle is still far away.
BTC/USD Rainbow Price Chart. Source: Blockchain Centre
As Cointelegraph reports, PlanB’s proposed bitcoin pricing models are worth $100,000 or more this year and will reach $576,000 or more in the current half-cycle ending in 2024.
Large peak discharges continue
Meanwhile, there are already signs that the institutions are still interested.
On Monday, customer-focused professional exchange Gemini, after seeing $257 million in BTC, dumped its holdings within ten minutes.
This large outflow characterizes the last few months and suggests, with the success of instruments like the Target Bitcoin ETF, that demand is unstoppable around $60,000 per coin.
Annotated chart of twin share issues. Source: Lex Moskovsky / Twitter
In general, BTC reserves on exchanges continue to decline, falling below 2.3 million this week.
Graph of bitcoin currency reserves against BTC/USD. Source: CryptoQuant
According to blockchain monitoring data for the Glassnode source, confirmed by Whalemap, overall buyer support continues to stabilize at $57,000, reducing the likelihood of a more significant price drop.
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