Analysts usually infer and refer to the past performance of Bitcoin and other cryptocurrencies, to predict and predict the next movement.
According to Alex Krueger, a cryptocurrency analyst and economist, the current cryptocurrency market dynamics are not like those seen in the pre-2021 rally.
Current crypto market dynamics are nothing alike June-July 2021
Fed: ultra dovish
– Sentiment: panic
Volatility: very high (iv 100-75)
Funding: very negative
– Fed: hawkish
Volatility: low (iv 60)
Funding: flopping around 0
— Alex Krüger (@krugermacro) January 18, 2022
July 2021 saw a period of consolidation shortly after a death cross formed on the Bitcoin curve in late June.
Bitcoin also hit a low of $28,800 after making a bearish crossover and later entered a sideways trade.
Bitcoin was trading sideways for about a month before a positive move emerged in late July 2021.
Bitcoin hit an all-time high of $69,000 on November 10.
The same analyst explained:
Many are comparing what is happening now with what happened with Bitcoin in June and July 2021.
Technically, the charts are very similar, but the overall fundamentals have changed, the ratings are much larger, and there aren’t many shortcuts to squeeze.
Analyst Kroger maintains optimism regarding the breakout, commenting:
I am still looking for a higher Bitcoin breakout to $46K.
The outflow of Bitcoin miners reaches its highest level in one month:
According to Glassnode data, the outflow of Bitcoin miners continues to record new heights.
Previous 1-month high of 6.509 BTC was observed on 17 January 2022
View metric: pic.twitter.com/FHMInd98YH
— glassnode alerts (@glassnodealerts) January 18, 2022
This measure just reached a one-month high of 6,639 bitcoin after hitting a previous high of 6,509 bitcoin on January 17.
Likewise, the outflow of miners rose to a one-month high of 71,859 BTC.
The previous one-month high of 71,462 BTC was observed on December 28, 2021, when BTC dropped from 50,720 to $47,300
An increase in the number of coins available for liquidation on exchanges could indicate negative concerns for leading cryptocurrencies.
In the past, such spikes in mining outflows have indicated lower prices, but they don’t always guarantee a drop down the road.
It will be interesting to note if the recent increase in miner flows leads to a significant drop in prices or if the bears are on the wrong side of the market.
At the time of the article’s publication, cryptocurrency Bitcoin is trading near $41,800, a drop of nearly 2% on the day.
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