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- Analyst Filbfilb predicts an increase in Bitcoin’s price to $11,500 in the short term.
- The growth in the number of addresses, the all-time high for the hash rate, the “halving effect” and the decreasing amount of Bitcoins on exchanges are only some strong fundamentals.
While Bitcoin is currently testing the $11,000 resistance level once again, the fundamentals of BTC are strengthening and pointing to an imminent rally. A main factor for the current price movement is probably the increase in institutional adoption, especially the news from yesterday on Square buying 4,700 Bitcoin.
However, an even more bullish signal, the increase in the supply of Tether (USDT) during 2020, was pointed out by analyst Filbfilb. The analyst says the $10.9 billion rise of Tether (USDT) in 2020 suggests traders are storing their capital in the stablecoin as they prepare to buy BTC. Furthermore, he noted that a USDT expansion has historically preceded Bitcoin price increases. And Tether has expanded massively in the past month alone:
50% is greater than the ENTIRE USDT cap that took BTC to $14k last time… AND price retracted since by c. 10%. I don’t subscribe to Tether conspiracies, but I do subscribe to supply and demand.
Otherwise, he pointed out that there are other indicators that suggest an increase in the price of Bitcoin: the growth in the number of addresses, the all-time high for the hash rate, the “halving effect” and the decreasing amount of Bitcoins on exchanges. The analyst stated that he is cautiously bullish on Bitcoin and believes that resistance levels will fall. Therefore, he expects “a strong move” possibly in the coming week and a target price of $11,500 for Bitcoin.
Impact of institutional adoption on Bitcoin’s price
On the other hand, analyst Willy Woo shared equally bullish metrics for Bitcoin’s price. The analyst said that “for the first time” in his career as a Bitcoin analyst he notes that the on-chain metrics are in “moon mode”. However, Woo noted that the market has not yet reacted, but expects this to happen in 2021. The analyst said the current state of the market presents an “opportunity” he had only seen in 2016.
Woo also shared the chart below that shows the reduction in Bitcoin funds on exchanges for the spot market. The analyst noted that this is a “very bullish” macro indicator. In addition, he believes that the Bitcoin purchases of Square and MicroStrategy are “the tip of the iceberg”.
The analysts’ predictions are consistent with the most recent report by Mike McGlone, Senior Commodities Strategist for Bloomberg Intelligence. According to the report, Bitcoin will reach $14,000 possibly by the end of 2020. In addition, McGlone adds that the cryptocurrency will keep consolidating its position as a digital version of gold, thus losing volatility and increasing its price at a slower pace.
The strategist for Bloomberg predicted that Bitcoin will remain strong on its two main indicators: increased adoption and decreased supply. Therefore, a Bitcoin price of $100,000 seems to be possible 2025, according to McGlone.
