The flagship asset took an unexpected bearish divergence in January, yet there is a major catalyst that could support a rally up to $72.5k in February.
Social media is filled with a buzz of Bitcoin price forecast, where some veterans argue that the most dominant asset will be a $10 trillion asset by the year’s end. While others predict BTC will eventually lose its value.
The macro outlook remains tough as rapidly changing US Feds policy could pull down the price to multi-year lows. Currently, the Bitcoin price appears to be in the middle of the sea, trending far from two extremes ATHs and ATLs. Yet there are few indications that a substantial resurgence is on the cards.
Spotlight On Bitcoin’s Illiquid Supply!
Bitcoin bears turn a deaf ear to the bottoms with the last couple of days escorting in a new round of losses. Currently, bulls are eyeing to break the barrier of $40k to confirm the massive uptrend.
In addition, the analytics of Glassnode highlight that illiquid divergence is likely to skyrocket the asset’s price action. The same metric has previously indicated plausible buy or sell calls.
The above chart indicates that illiquid supply calling the tops. Usually, the bull cycle has seen comparatively 50% of the price rise if there is a 100% upsurge in illiquid supply. The metric has been optimistic since the bull cycles from 2011. The sell calls are potentially indicated post-hitting new ATH in every cycle.
In contrast, the metric also made plausible buy calls historically. The illiquid supply usually plummets to generational buy zones, once the Bitcoin price corrects by 40 to 45% after its new ATH. Currently, the flagship asset is trading 47% below its ATH and illiquid supply has reached a support neckline.
Hence, there are strong possibilities of illiquid divergence in the next couple of weeks, thereby skyrocketing the price by at least 50%. If the historical pattern repeats, then the BTC price is likely to hit $72.5k in the next supercycle which is expected to initiate by February 15th.
Collectively, the Bitcoin price is on the verge of spectacular bullish divergence, along with illiquid supply, BTCs open interest, funding rates, and more are hinting at flipping bearish rule. As retailers returning to the market eventually, we can expect a solid upsurge beyond $70k in the next couple of weeks.
Source: https://coinpedia.org/bitcoin/bitcoin-illiquid-supply-to-undergo-bullish-divergence/