Trade analysts are reports state that Bitcoin is going to hit $50,000 in the coming sessions. Bitcoin is the most famous and desired cryptocurrency, whose market capitalization recently soared above that of Facebook and Tesla, dropping lower from its record high near $42,000. Nevertheless, its plunge prompted rich traders and institutions to purchase it at cheaper rates, leading to further liquidity crunch against its limited supply cap of 21 million tokens.
Bitcoin’s previous trend was bullish. Therefore, the cryptocurrency’s possibility of notching another upside run is higher on its breakout move out of the Triangle pattern. That should take its price above $50,000.
A move above the Triangle, coupled with a rise in volumes, expect to take the bitcoin price above $50,000.
Even though the price target looks achievable, according to a plethora of analysts that determine their market bias based on on-chain indicators. For instance, data analysts at Glassnode highlighted Bitcoin’s largest liquidity depletion to date in recent weeks, hinting that its bullish for the cryptocurrency.
“Not only are funds being withdrawn from exchanges, but coins are continuously moving to strong hands,” they stated. “In the past 30 days, around 270,000 BTC moved to entities considered HODLers.”
“The [Glassnode] chart might be more important than the price chart: bitcoin supply is being withdrawn from exchanges at an all-time-high pace,” added Luke Martin, an independent market analyst. “Historically, bull cycles have ended AFTER liquid supply change flips positive. That flip has not happened yet.”