Bitcoin to Record Bullish Rebound Soon: Analysts
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While recent trading dynamics haven’t been favorable, on-chain analysts have said they can see a light at the end of the proverbial tunnel, as a sizable percentage of the total BTC supply remained unchanged for over a year.
Blockchain researchers and analysts Nik Bhatia and Joe Consorti recently published an article that talked about dormancy on the Bitcoin network and how it affects the crypto asset’s prospects. The article was termed “Ebbing HODL Waves Signal Bitcoin Bottoms.”
The article detailed that a prolonged period of BTC dormancy is a clear sign of the market has reached its bottom. The article noted: “As bitcoin movement diminishes, a reliable floor is being set underneath the spot price.” The analysts also explained in the article that the markets are essentially laying the groundwork for the next uptrend.
Drawing reference from a Glassnode chart, the on-chain analysts further explained that about 65% of all Bitcoin supply has not moved in over a year. Based on historical data on the chart, a sighting of this dormancy trend typically indicated that the bottom of a downtrend was in, and a bull run was just around the corner.
Key Bitcoin Levels to Watch — September 4
Bitcoin has spent the past few days within a sideways pattern between $20.5K and $19.6K. It appears that the $19.6K support mark is the last saving grace holding BTC from a full-on correction to the sub-$18K region.
That said, bulls need to keep the defensive spirit around this line alive in the near term until BTC regains a footing above the $20.5K mark, lest the price loses its lasting composure.
Meanwhile, my resistance levels are at $20,000, $20,500, and $21,000, and my key support levels are at $19,600, $19,000, and $18,000.
Total Market Capitalization: $982 billion
Bitcoin Market Capitalization: $380.8 billion
Bitcoin Dominance: 38.7%
Market Rank: #1
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