According to crypto analyst Akash Girimath, Bitcoin (BTC) price is showing its most bullish pattern ever in 2021 as it pulls back to gain support from a ceiling before the next divergence rises. The analyst claims that if successful, this move could bring BTC extremely close to a six-digit value. On-chain metrics are also trending bullish as investor interest grows at a steady pace, all this coupled with more widespread adoption of the leading crypto, suggesting that the last two months of 2021 and the first quarter of 2022 will be something crypto enthusiasts look forward to. . Bitcoin analysis by Akash Girimath cryptocoin.com We have prepared for our readers.
Adoption takes on a new meaning
The analyst states that the fact that Bitcoin is a municipal asset is an indicator of its adoption. Miami and Mayor Francis Suarez takes Bitcoin adoption to a new level by announcing that every citizen with a digital wallet will earn dividends in BTC. This development comes right after CityCoin, known as MiamiCoin, was launched in August. CityCoin gives power back to communities by launching a city’s cryptocurrency. Miami is not the only city, New York also launched its own coin “New York Coin” on November 10.
Staking MiamiCoin generated over $21 million, which Mayor Francis Suarez believes will enable the city to meet its tax needs if yield generation continues at a similar rate. The Mayor also added that all Miami citizens will be given a created wallet that will receive free BTC dividends. On the adoption side of things, BitWise is optimistic about a “spot Bitcoin ETF” endorsement. Matt Hougan, CIO of the investment firm, said:
As a result, what many investors want is a Bitcoin ETF. We think this is possible. Bitwise will continue to pursue this goal and we will look for other ways to help investors access the incredible opportunities in crypto.
BitWise has therefore left the Bitcoin futures ETF race as it remains focused on the spot ETF. As adoption continues in the West, the Indonesian Ulema Council (MUI) classifies Bitcoin and cryptocurrencies as haram. In order for people to be allowed to trade these assets, they must abide by Sharia rules and demonstrate a clear benefit.
“Bitcoin price preparing before takeoff”
According to the analyst, the Bitcoin price has broken out of a bullish pennant pattern that shows the continuation of the 65% uptrend that occurred between September 30 and October 20. The analyst states that the first leg, called the flagpole, follows a consolidation that squeezes BTC price to form a pennant, and this technical pattern is a bullish pennant that predicts a 38% rise obtained by adding the high of the flagpole to the breakout of $62,760. Akash Girimath points to the following technical levels in his analysis:
On November 8, BTC marked a breakout via the pennant. However, since then, BTC has pulled back and is aiming to retest the 2-day demand zone, which currently ranges from $60,521 to $63,620. This pullback will allow BTC to gather strength before surging 38% to $86,836. On the way to the target, Bitcoin price is likely to take a break at the 161.8% Fibonacci extension level at $77,908. In some cases, this increase could extend another 15% to mark the psychological level of $100,000.
Supporting this bullish outlook for Bitcoin price are the daily active addresses hovering at 958,000, according to the analyst. The analyst states that this number has steadily increased by 20% since the end of July, indicating that investors are returning to invest in BTC, which indicates that there is a bullish story in the game.
“Investors need to be careful as there is ‘Greed’ in the market”
The analyst said the estimated leverage for all exchanges, showing how much leverage investors are using in their trading, reached an all-time high of 0.199, has since started to decline and is now hovering at 0.189, indicating a reset in the number of leveraged positions. and makes the following comment:
Perhaps this is due to the flash crash on November 10. However, this development is undoubtedly good for Bitcoin price as it loosens the market, given that it will eventually allow the price to rise even higher.
According to the analyst, from a short-term perspective, the 30-day Market Value to Realized Value (MVRV) model has been reset and is currently displaying 1%. The analyst informs that this on-chain metric is used to determine the average profit/loss of investors who bought BTC last month and states that the flash crash seems to reset the metric, indicating that an uptrend is reasonable.
The analyst says investors should be mindful that the Fear and Greed Index shows “Greed” in the market. According to the analyst, an increase in this metric pushing it into the “extreme greed” area will suggest that another correction may be made.
The analyst states that the Bitcoin price will likely continue to rise as long as it stays above the 2-day demand zone, which stretches from $ 60,521 to $ 63,620, and then makes the following assessment:
A break below this area will indicate that the optimistic narrative is facing great general pressure and will likely fail. Confirmation of this will come from BTC’s daily close below $60,000.
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