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- Bitcoin (BTC) has at the start of the week shed around 5 percent of its value, slipping below 40K and wiping out its weekend gains.
- Market analysts CryptoBirb notes that given the recent trend, BTC can push to the $90K to $120K price level in the next 6 months an outlook that is supported by the accumulation pattern witnessed from long term investors and Bitcoin miners.
Bitcoin (BTC) after a strong start to the month has wiped out its weekend gains. After initially climbing as high as $42,000 during the weekend, the asset has at the start of the week shed 5 percent of its gains falling just below $40,000. According to our data, Bitcoin is exchanging for $39,500. The crypto king has dragged with it the wider market which has seen a nearly 4 percent drop in the last 24 hours.
One of the reasons blamed for the drop is the recent infrastructure bill that seeks to get $28 billion from the crypto industry. The bill has drawn great controversy with market leaders like Cardano’s Charles Hoskinson warning that it could negatively affect the wider industry.
Read More: Cardano founder Charles Hoskinson criticizes the new infrastructure bill seeking crypto taxes
Market analysts are despite the recent drop unwaved by the price action. Several pointers still indicate that Bitcoin is still on a positive path. One of these is the continued accumulation pattern witnessed among Bitcoin miners and long term investors.
Data from CryptoQuant has in particular shown that miners are consolidating, a sign that they are anticipating a positive move. Data represented by Miners’ Position Index (MPI) reading from the firm shows that close to two months now, miners have been accumulating. The most recent reading is -0.67 with a reading of 2 generally representing active selling from the miners.
Last week, Santiment highlighted record levels of Bitcoin outflows from exchanges. Historically, this has signalled optimism across the market with investors choosing to hold their assets in private wallets until a time when they need to sell to which the market witnesses increased inflows in exchanges.
📊 #Bitcoin‘s exchange action was a primary initiator of the breakout we saw this week. $BTC‘s price has hit $42.5k, and there were huge exchange activity swings favoring coins moving off of exchanges Monday, Wednesday, & Thursday to push prices upwards. https://t.co/iitOXX1PRK pic.twitter.com/Fz2KV7hneX
— Santiment (@santimentfeed) August 1, 2021
With the miners joining long term investors in accumulating, this is set to trigger a shortage and boost demand. In the past, this has led to prices increases.
Bitcoin (BTC) to climb above $90K in 6 months
With some of the most influential players in the market accumulating, some experts are fairly confident that Bitcoin will not only retest the recently established all-time high of $65K but will go on to surpass this. According to market analyst CryptoBirb, Bitcoin is likely to climb as high as between $90K and $120K over the next 6 months.
$BTC this monthly close can take us to 90-120k in next 6 months imo👀 pic.twitter.com/c3cPxWAJxK
— CRYPTO₿IRB (@crypto_birb) August 1, 2021
This prediction aligns with others from a majority of top analysts who have suggested that the digital asset will reach a new high of $100K by the end of the year.
Related: 100K for Bitcoin in 2021 still possible? Lark Davis makes profound analysis
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