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Bitcoin on track for $100k end of year target, on-chain analysts remain bullish

  • Analysts have noted that long-term investors are not selling their BTC holdings through the dip.
  • On-chain analysts observe that Illiquid Bitcoin supply has hit an all-time high.
  • MicroStrategy CEO states that the price of Bitcoin in the long run is irrelevant.

Traders fear an imminent Bitcoin bear cycle as the asset’s price drops below $43,000. On-chain analysts are bullish on BTC, confident in end-of-year predictions.

Investor predicts an inflow of $1 trillion in Bitcoin 

Kevin O’Leary, Canadian TV personality, businessman and investor, recently stated that there is “another trillion dollars worth of buying” in Bitcoin. O’Leary shared plans to increase his crypto exposure to 7% by the end of 2021, a 133% rise. 

Though the asset has plummeted and dropped below $50,000, on-chain analysts continue to remain bullish on BTC. 

@_Checkmatey_, a lead on-chain analyst at market intelligence platform Glassnode, observed that the illiquid supply of Bitcoin (BTC held in cold wallets off of exchanges) has hit an all-time high. Historically, this indicates that investors prefer holding BTC rather than selling and taking profits, a bullish outlook for Bitcoin. 

The current liquidity created by BTC changing hands on exchanges is not whale liquidity, and long-term investors (older coins) are resisting selling. Daniel Joe, a technical analyst and cryptocurrency trader, is of the opinion that older coins are not selling. 

The drop below $50,000 has led to a spike in “fear” among traders, fear of an imminent bear cycle and the end of the current bull run. However, Michael Saylor, CEO of MicroStrategy, shared his views on the asset’s price. Saylor believes that the entry price for Bitcoin traders is irrelevant in the long-term. 

FXStreet analysts expect the BTC price to hit $51,000 in the near term. Analysts are bullish on BTC, note similarities between the brief bull run in 2019 and the current price action. 

 

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