Hello and welcome to this week's episode of Overbit Insights.
When we last spoke, Bitcoin was closing in its eighth-consecutive green daily candle, a feat not seen since December 2020. A few days later, Bitcoin continues in this trend, holding firmly above the $40,000 mark. Price resistance in the low $40,000 level remains strong, but experts ask aloud if the worst of the recent bear market has gone.
Even more impressive than clearing May's resistance of $40,000, though, is Bitcoin setting the record with eleven straight daily wins - the longest in eight years, according to CoinDesk. Looking back on this past year of price action in the crypto markets, it certainly has been a spectacle to watch for everyone involved.
Retail investors piled into Bitcoin as prices soared early in the year, while big institutional investors grew reluctant to enter the market at lofty valuations. Prices continued to rise with less and less volume until this pattern eventually resulted in a massive, 50% sell-off in the markets, with Bitcoin crashing from $60,000 to just under $30,000.
After that, Bitcoin Prices traded in a range between $30,000 and $40,000 for about two months. That is, until when Bitcoin regained the $30,000 level on July 20, which officially kicked off Bitcoin's longest win streak yet.
In the future, it's undoubtedly hard to bet on anything, let alone Bitcoin, to continue a record-setting trend. For a trader, it's always important to capture the bulk of a movement and not get left holding when it's time for a reversal.
That being said, institutional and retail interest seems to have bottomed in July, at least temporarily. As we advance, it will be essential to see how Bitcoin reacts near this breakout of the $30,000 - $40,000 range. As Bitcoin continues to inch up during July, we close out today by looking at where investors have their eyes for Bitcoin and cryptocurrency by the end of the year.
Heading into the end of the year illiquid supply reaches an all-time high, the Bitcoin 'supercycle' sets up a Q4 BTC price peak. Recent occurrences indicate that a Q4 "blow-off peak" is once again on the table, as the Bitcoin price rebound clings to its 23 per cent weekly gains. Analysts believe Bitcoin (BTC) is preparing for a rebound that will lead to a replay of the classic bull run years of 2013 and 2017.
As local highs of $42,400 occurred on July 31, market narratives shifted back to a bullish Bitcoin 'supercycle.' The Bulls have announced their plans for the 2021 season. Since mid-May, Bitcoin has been working hard to recover from the effects of the China miner collapse, but last week's price gains were more robust than most expected.
On Twitter, Jeff Ross, founder and CEO of Vailshire Capital, stated something to the effect of "After a worrying three months of news and price action, Bitcoin went on to print five green monthly candles in a row and soared up 10x in the second half of 2013,". This statement shows that the 'supercycle' theory is gaining traction again.
After bottoming out at 83 exahashes per second (EH/s), the hash rate is back above 100 EH/s, while difficulty witnessed its first positive readjustment since the May price fall on Saturday. Strong holders with little to no history of selling their BTC are now in charge at levels never seen before and not seen since Bitcoin's current all-time high of $64,500 in April.
With all this in mind, analysts think we might see the bull run advance again in Q4. Stay tuned, and thanks as always for reading Overbit Insights, and we'll work to continue to bring you the best news in the markets!