On the four-hour chart, the asymmetrical triangle looks healthy, and it has been like that for a few days now. This a relatively up-trending market and is tending to act as a bullish pattern. Although the price of Bitcoin is currently on a downtrend, we could be heading for a new test for that line of support, which is the green bottom line on the triangle. If that goes well, this could be an excellent opportunity to put in buy-ins and go long on BTC.
Bitcoin has also fallen below the 50 period average on the four-hour chart; this could indicate the setting up for a further price decrease in a short term.
Talking about the bullish fundamentals for Bitcoin, the chart below shows nothing but the truth for Bitcoin; the higher the price Bitcoin goes, the more Bitcoin is being taken off of the exchanges and being charged away in cold storage. We have seen incredible accumulation for Bitcoin over the last few months. As the price continues to soar, people are buying more and more Bitcoin.
This will be in time for a while because the institution demand for Bitcoin is very high. Just yesterday, Grayscale bought 16,244 BTC worth $590m, which equates to 18x of the daily Bitcoin mined. This is the best indicator of the institutional demand for Bitcoin. If Grayscale continues to bit that amount of Bitcoin every day, demand will definitely and dramatically outpace the ability for miners to produce Bitcoin. When demand goes to, and supply cannot keep up, the price goes up also. It is best to enjoy this consolidation period we are having right now because it will not last long.
Coinshares plans to launch a $200 Bitcoin exchange-traded product on the Swiss Stock exchange in Switzerland. Bitcoin will go a lot higher during this market cycle, despite how the prices have been fluctuating since Bitcoin got to $42,000.
The chart below also shows the four hear cycle for Bitcoin; at this point, we are about one-third of the way through the Bull cycle. There is still a high possibility that we will hit 200,000 or potentially more during this cycle.
The market is just getting heated up; this is not the end for Bitcoin; this is just a consolidation phase. Bitcoin is merely catching its breath before going higher.
