Pseudonymous cryptocurrency analyst ‘Crypto Birb’ has revealed on social media he believes the price of the flagship cryptocurrency bitcoin is “ready for major bounce” and a final move up in this bull cycle near the end of the year.
In a tweet sent to his over 320,000 followers, Birb noted that over-the-counter outflows signaling a BTC buy signal “aligns perfectly with a complete reset on trend and momentum for BTC,” which implies the downward movements bitcoin has been seeing may be over.
In his tweet, the pseudonymous analyst also analyzed the net unrealized profit/loss (NUPL) indicator, which measures the difference between unrealized profit and loss to determine whether most investors are in a state of profit or loss. Per his words, it’s as oversold as it was in September 2020, before BTC’s price started surging to its new all-time high.
Birb added that the market may still drop to $23,000 or $24,000 before recovering, and predicted a final move up in the current bull market may occur only by the end of the year in November or December.
It’s worth noting that on-chain has shown Bitcoin reserves on centralized cryptocurrency trading platforms have been steadily dropping even as the market ticks downward. An average of 36,000 BTC has been leaving exchanges every month.
In a report, Glassnode noted that the amount of BTC being held by cryptocurrency exchanges is steadily dropping as large investors are moving their funds into secure cold wallet storage instead of leaving them on exchanges where they would be ready to sell their funds.
The number of entities holding bitcoin since May has increased, from roughly 250,000 to nearly 300,000. These entities are described as unique clusters of addresses belonging to one individual or organization. Data shows whales may be leading the accumulation, as wallets with between 1,000 and 10,000 BTC are now holding as much BTC as they were when the price was at $57,000.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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