analysis Bitcoin (BTC) analysis shows that cryptocurrency leader has resumed the price growth after a short consolidation phase above USD 18000. BTC/USD hit $18,980 during early Asian hours on Saturday and retreated to $18,650 by the time of publication. Bitcoin‘s market cap surpassed $345 billion, while its average daily trading volume is at $39 billion.
Market experts tout Bitcoin as a safe-haven
As Bitcoin is clearing one resistance after another, the analysts come up with optimistic forecasts for 2021. Thus, the managing partner of Fundstrat Global Advisors, Tom Lee, recently stated that the asset will probably replace gold as a store of value and a hedge against inflation.
“It’s killing it this year — it’s just crushing all other hedges and asset classes this year, but in 2021 I think Bitcoin could be the year of the fireworks… the best is probably yet to come, he said in the interview with Yahoo Finance.”
Similarly, Rick Rieder, BlackRock CIO recently pointed out that Bitcoin is more functional than gold.
Bearish signals continue piling up
Meanwhile, the Bitcoin charts look worrisome. Thus, the TD Sequential indicator presented sell signals in the form of a green eight candlestick on many timeframes, such as 3-days and weekly charts. The bearish formation needs a confirmation in the form of a red nine candlestick followed by a red two candlestick trading below a preceding red one candle.
Notably, BTC analysis shows that price has the potential to retest new highs before the correction begins, but investors should be careful at this stage because the market is grossly overbought.
On-chain-metrics say the way to the moon is clear
On the other hand, IntoTheBlock’s “In/Out of the Money Around Price” analysis model shows that there are significant barriers up until $19,300 as less than 1000 addresses bought slightly over 3,000 BTC between the current price and $19,300.
However, BTC is sitting on top of firm support as over 400,000 addresses previously purchased over 350,000 BTC between $18,000 and $18,600. This supply wall can absorb the selling pressure and catapult Bitcoin to new highs.