Bitcoin holding rate reached a 9-month high, raising the hope of a “bull flag” rebound to 70,000 US dollars

Bitcoin’s year-long price increase (BitcoinData from Glassnode shows that the market and hope for more upward movements in the future encourage traders to hold tokens instead of trading them as other assets.

Blockchain data analysis service Revealed on Thursday The total amount of “coins held or lost” reached a nine-month high of over 7.21 million BTC. Simply put, the Bitcoin indicator reflects an increase in out-of-circulation tokens-tokens that may have been stored in cold wallets by long-term holders or lost due to human error have the least chance of recovery.

Simply put, the Bitcoin indicator reflects the increase in tokens out of circulation-these tokens may be stored in cold wallets by long-term holders, or their private keys may be lost forever for various reasons.

The number of BTC held or lost coins. Source: Glassnode

As a result, the total number of bitcoins lost/held exceeds 34% of its total supply of 21 million tokens, making cryptocurrencies even more scarce.

More evidence of Bitcoin supply shocks

Further data provided by CryptoQuant shows that the amount of bitcoin reserves held by all cryptocurrency exchanges has fallen to the lowest level since August 2018 — 2.337 million bitcoins on October 28, 2021.

At the same time, the Miner Position Index (MPI), which measures the ratio of Bitcoin leaving all miners’ wallets to its 1-year moving average, has been constantly changing Below zero Since March 6, 2021, this indicates strong accumulation among miners.

Bitcoin all foreign exchange reserves and miner positions index. Source: CryptoQuant

“The number of bitcoins [owned by miners] Similar to the level in May when the price was below $40,000,” famous A CryptoQuant analyst tried to rebound after BTC fell below $60,000 on October 26 and added:

“You can easily see how early we are before the final bull market.”

What do BTC price technicians say

Bitcoin price correction From approximately US$67,000 to US$58,100 It appeared after the 60% rebound in October. However, BTC/USD has formed a parallel descending channel range (purple), which increases the possibility that the structure is a bull flag.

The BTC/USD daily price chart has a bull flag setting. Source: TradingView

The flag of the Bulls is Bullish continuation pattern After the consolidation period, the price is pushed down in the direction of its previous trend. In doing so, once the price breaks the Flag’s upper trend line with a higher volume, the technical indicator will equate the length of its upward target with the size of the previous upward trend (also known as Flagpole).

related: Is Bitcoin price imitating the 2017 bull market?Learn about market reports with ETF expert Eric Balchunas

The Bitcoin flagpole is about $15,000 long. This means that cryptocurrencies may technically rise by $15,000 from the breakthrough point. The Fibonacci levels in the above chart may be used as support to rebound to $70,000 or above the bottom.

However, not all traders believe that the current settings are bullish in the short term.

“Some people will say that this is a bull market flag, which is possible. But the transaction volume characteristics indicate that it is most likely to go lower from here,” Comment Alex, an anonymous cryptocurrency trader.

Trader Pentoshi added that a break below the recent low of $58,000 would be bad news for the bulls.he Said:

“BTC is 58,000 to the U.S. dollar. What if this is a huge bull market flag, and we are in a bull market and the bull market flag is broken? Now theoretically the price should not return to those lows, or Bitcoin is in trouble 64,000 29k 29k backup, During that time, there were only 2 misses on the macro.”

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