Although Bitcoin is struggling to recover from the crash that saw it shed half its value, experts predict that this bearish market will not last. According to a new report from Bloomberg Intelligence (BI), Bitcoin is on the verge of resuming its upward run with its recovery expected to be massive.
BTC and OIL
Huge investment is expected to flow into the cryptocurrency while crude oil has been predicted to start a downward trend that could come with serious economic implications.
Bloomberg Intelligence estimated that currently, 470 barrels of crude oil is equivalent to one Bitcoin, which is said to be similar to the trading position in 2016 when the crude-to-Bitcoin ratio was at a three-year low before Bitcoin's subsequent bull-run in late 2017 and early 2018.
According to Mike McGlone, commodity strategist at Bloomberg Intelligence, the pre-existing trend strongly favours Bitcoin over crude in the second half of 2021.
Bullish price metrics approach "launch zone"
On-chain data service CryptoQuant, which has historically captured every major BTC price rally over the past two years, has moved its focus to an indicator called the Taker Buy Sell Volume/Ratio.
Depending on whether the order taker is a buyer or seller (whether a transaction occurs at the ask price or the bid price), you can distinguish between long volume from taker seller volume. See this link for complete explanation.
Taker Buy/Sell Ratio tracks the rolling delta of market buys & sells, across perpetual swaps exchanges and is useful in deciding when to hold an investment position and when to take profit during a local market cycle.
Right now, the ratio seems to be predicting another BTC/USD surge, leading to a classic "take profit" point.
The hot zone
Analyst Cole Garner even highlighted what to expect if history were to repeat itself. He noted, however, that the trigger phase - where the Report touches the upper green channel, "has not happened yet."
"Buy signal coming," he nonetheless commented in his Tweet.
Bitcoin Taker Buy Sell Volume/Ratio annotated chart. Source: Cole Garner/ Twitter
What to expect
By now it is clear that the technical picture alone is not capable of significantly affecting price action.
In essence, without new FUD or "disruptive" news, a technical breakout of key supports is highly unlikely.
In terms of short-term trading, we expect increasing volatility in this early week which could lead to numerous false breakouts.
Last week, investment fund Capital International bought a large stake in Microstrategy, which has BTC 100,000+ on its balance sheet thanks to CEO Michael Saylor.
The direct and indirect exposures of large institutional investors continue to grow unabated and lay the groundwork for the bullish setup to begin. It may be days or a few months, but the current bullish cycle is not over.
The Cryptosniperz team
References and further reading
https://twitter.com/ColeGarnerXBT/status/1414466692923658246
- ColeGarnerXBT
DISCLAIMER
We are not giving any financial advice regarding cryptocurrencies, but rather giving applicable advice for new, intermediate and experienced people who are currently into cryptocurrencies or someone who is just now realizing what it is. Before you read this I must say that this blog will be based on the assumption that you have already done some research on cryptocurrencies and the Blockchain ecosystem. We will continue to provide explanations and details to the best of our ability, however we encourage you to do your OWN research because only YOU will know how this second financial revolution will best fit into your life. That said, I hope you are as excited as we are and thank you for reading our contents.