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Bitcoin course awaits successful completion of 2020 – analysis
Multiple network metrics point to a favorable 2020 end for bitcoin
Since the beginning of the year, bitcoin has risen in price by almost 50%
In the short term, bouts of BTC sales are not excluded
Several network metrics at once indicate that the end of this year will be favorable for Bitcoin (BTC)
The largest cryptocurrency by market capitalization has gained nearly 50% since the beginning of this year. At the same time, if the general bullish forecast for BTC remains valid, in the short term, it is possible that it will fall below the psychological mark of $ 10,000, which will be perceived by market participants as an opportunity to join the bullish game at more attractive entry points..
Q4 promises growth in BTC
Well-known analyst Willie Wu, who a few days ago spoke about the prospects for a complete loss of connection between the bitcoin rate and traditional markets, tweeted on September 30 that the cryptocurrency will end the current year on a positive note..
According to the expert, the current surge in the activity of new market participants speaks in favor of the upcoming rise in the rate of the digital currency..
Indeed, data from the analytics platform Glassnode indicates a significant increase in the number of new members on the BTC network. By and large, this is not a guarantee that this factor will inevitably lead to a rise in the BTC rate. At least for the time being, a moderate accumulation phase is underway in a market where the main coin is trailing in a limited sideways range..
However, Willie Wu points out that the influx of new entrants to the network has not yet been reflected in the price of bitcoin, which is rare. Traders call this situation a divergence, in this case, clearly bullish, which should be reflected accordingly on the rate of the first cryptocurrency..
The divergence shown in the chart below may be due to the liquidation of so-called iceberg orders by institutional buyers. Iceber orders are large buy orders that are deliberately fragmented into smaller limit orders to mask the real position size.
Microstrategy, which is listed on the Nasdaq exchange, approved Bitcoin as the main reserve asset earlier this year. Apparently, the company used a similar procedure with orders during the purchase of bitcoins for $ 425 million..
The bitcoin difficulty tape chart also speaks in favor of the upcoming growth of the digital currency rate. Difficulty feed tracks the impact of mining on the BTC price.
The general rule of this metric is that compression phases lead to a decrease in the cryptocurrency rate, and expansion phases lead to an increase in BTC..
At the moment, as the analysis shows, the difficulty tape has come out of the compression phase that has dominated the market since the collapse in mid-March. Now this metric points to a bullish outlook for Bitcoin, entering a phase of healthy expansion..
While the Bitcoin forecast for the fourth quarter looks favorable, at this stage the coin cannot stay above the $ 11,000 level, and in the short term, sales bouts are not excluded..
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