Bitcoin | Page 9 | The Gold Forecast

Bitcoin holds its ground while Ethereum gains ground

Tuesday, April 6, 2021 - 23:19 by Joseph M. Wagner II

While Bitcoin remains within 5% of its all-time highs, showing some remarkable price stability, BTC futures did close slightly lower by almost 2%, bringing the price of April futures to $58,695. Many people from both inside and outside of the cryptocurrency circle predict substantial gains for bitcoin in Q2.

One of these sources is the financial media giant Bloomberg. On Tuesday, the outlet published a report on the most likely outcomes for the second quarter, this summary of which reads, “A more likely 2Q scenario is to breach $60,000 resistance and head toward $80,000. A backup toward $40,000 support is less likely, in our view.”

The innermost circle of the Bitcoin community, the beating heart of the blockchain, its miners, have recently been hoarding their earnings of new BTC rather than selling them as fast as they produce them minors have been accumulating their stashes of it. This suggests that many miners are expecting higher prices within the near future and therefore not immediately liquidating in expectations of higher returns down the line rather than diminished prices.

Thermo cap is a ratio that measures the collective block rewards miners have earned since the genesis of a blockchain. An article published in Yahoo Finance by Valdrin Tahiri utilized data from Glassnode and the market cap/Thermo cap ratio to conclude that BTC’s rally is nowhere near its conclusion point.

An exciting ratio that has so far correctly predicted the two previous market tops is the MC/TC ratio. It simply divides these two values to find a ratio that can be used to assess whether the BTC price is trading at a premium regarding the rewards paid to miners.

“In 2011, 2013, and 2017 price peaks, the MC/TC ratio also reached a peak in overbought territory, which is designated as the area above 0.000004 (highlighted in red). During the 2011 peak, MC/TC was at 0.00000595, in 2013 it was at 0.00000491, while in 2017 it was at 0. 00000439.These were the only three times in bitcoin’s recorded price history that MC/TC was above 0. 000004.Currently, MC/TC is at 0.00000246. This indicates that there is ample time until the bull market is over.”

Like we had predicted last week when Ethereum cracked the $2,000 barrier, ETH is trading above $2,100, posting a sweet gain of nearly 15% on the day. We had also forecasted that ETH would reach $2,400 - $2,500 by the end of April. We still hold to this belief but believe we may see that price point hit even sooner. We recommend anyone with a membership to one of the many spot exchanges buy ETH with the above-mentioned price targets.

Proper Action

Buy Ethereum at current price ( approximately $2,100)

Protective stops to be placed at $1,900

Upside target $2,400 - $2,500

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Previous Reports:

Monday, December 28, 2020 - 18:49
Bitcoin saw an explosion of growth in terms of its price over the holiday weekend most notably the day after Christmas where spot markets saw a nearly $2,000 increase. This weekend rally caused a massive gap in the CME’s futures chart of nearly $3,000 to appear upon opening today. This Christmas rally surely negates the ‘Tri-Star’ top we were talking about on Friday as no confirming candle was... Read more
Thursday, December 24, 2020 - 15:34
With a higher number of the investment community eyeing Bitcoin through a bullish lens than ever before, do the technical back up their sentiment? As for western technical indicators they are mostly bullish. You have all three major averages (50,100,200-day) in a bullish formation with the shorter-term averages above the longer ones. Prices are also well above these moving averages, with the... Read more
Monday, December 21, 2020 - 16:35
After breaching previous record highs by $4,000 Bitcoin seems to be losing momentum. A retracement of some sort is likely, the most important question is “will the $20,000 level serve as support?” After barreling through resistance on Wednesday, December 16th resulted in a new influx of buyers coming into the market Bitcoin has shifted its extremely bullish slant to one of indecision. Since... Read more