A technical analyst and the person who developed the stock-to-flow model, Willy Woo, published a graphic on August 22 that depicted the amount of Bitcoin that was available on exchanges. He made the observation that market circumstances had been unfavorable up until the beginning of August. This was principally due to an influx of about 100,000 BTC, which had been sold by the governments of Germany and the United States.
Additionally, Woo mentioned that speculation has been widespread, resulting in the production of more paper BTC. Paper Bitcoin is a term that is used to describe derivative products such as futures and options which do not require immediate control of the actual asset.
As stated by Woo, the market crash that occurred at the beginning of August was successful in removing a sizable quantity of paper Bitcoin and leverage, both of which had been detrimental to the performance of the market.
The open value, also known as paper bets, has been reset back to its healthy state. When there is an excessive amount of speculation in the market, it is difficult for Bitcoin to increase in value. Woo also stated that BTC price action must get very boring and voiced the opinion that the market is about 66% of the way there. This indicates that a significant amount of the trading has evaporated, which has made it possible for more spot BTC to be taken in.
In the course of his discussion on the relationship of both demand and supply, Woo saw a transition from conditions that were short-term bearish to a position that was delicately neutral. However, the good news is that we are not now in a bear market; rather, we are only going through a prolonged consolidation period.
While this is going on, expert Peter Brandt brought attention to the fact that the present bull market cycle is on course to achieve the longest-ever post-halving phase without reaching a new all-time high. This suggests that an unprecedented peak may not be forthcoming in this cycle.
On the other hand, Benjamin Cowen, the founder of the Internet Trading Company, said that Bitcoin’s present value is in line with its anticipated advancement through the market cycle, which is based on previous trends.
Bitcoin Price Forecast
During the late trading session on August 21, the price of bitcoin reached a weekly high of $61,800. On the other hand, during the Asian trading session that took place on Thursday morning, the price dropped to slightly more than $60,822.
Although there has been strong selling pressure from government agencies and exchanges that have since closed their doors, Bitcoin has maintained within a range ever since it recovered from its dramatic loss earlier this month. For Bitcoin to be regarded as the beginning of a fresh upswing, the analyst from Rekt Capital stated that the cryptocurrency would need to break through the resistance level that is located at $61,420 for the week.
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