London, England, 4 July 2021, ZEX PR – What the fantastic year 2021 has been for crypto up until now. The intermediary Daniel Hyman from The Investment Centre says that we have seen the market detonate 230% higher, all the more as of late accident back down half and consider the big picture, it’s still just part of the way as the year progressed. You’ve got to love crypto, Right! Now one of the big questions on people’s minds right now is; where does the market go from here? Well, in the short term no one knows and we could see Bitcoin retest its previous all-time high of $20,000 but the broker does think in the medium to long term crypto is destined to be going so much higher.
Now predictions are notoriously difficult, lt especially in the crypto market. As all we can do is look at previous market cycles check the fundamentals and check the technicals and that is what this article is all about. So, we will be analyzing three of the favorite charts of the trader and will see exactly what they are saying. The broker will give his Bitcoin price prediction for 2021 but remember if Bitcoin is going a lot higher than everything else will be going a lot higher and then we’ll finish with some of the biggest crypto news for the week and I have one chart which shows crypto adoption rate which is mind-blowing.
Now one of the favorite charts of analysts is Stock-to-Flow. The stock-to-flow chart model was brought to us by Plan B and shows some excellent information. Its chart shows that we have 2013 run-up and the big crash we had the 2017 big run and the big crash, and this is the cycle that we’re in right now and this line that runs through the middle is the 365-day moving average and you’ll notice that it goes from overvaluing to undervalue to overvalue to undervalued across this moving average.
In 2021 we did have this epic run-up where the market tripled in such a short period and it broke way above the moving average and as you can see we’ve had this big crash which is now brought us under but according to the analyst this looks like a lot more similar as to what happened in the 2013 run where he shot up quickly and we had this big deep mid-cycle correction before the last run-up.
Now there are only two previous data points to go on so, it’s not a lot of information but it’s still better than working from nothing but basing on the last two cycles then this indicates that this is more of a mid-cycle correction than it is the end of the cycle and the next point is that it’s a better time to be making profits when it’s above the moving average than below and down here is another way of looking at when it’s over the moving average and under. So, the more extreme and overvalued it is, the better it is to be selling and the more extreme and under it is, the better time it is to be buying.
Now when the model variant is extremely over it’s time to be selling and when it’s extremely under, it’s a great time to be buying and this is where we’re at right now. This is giving an extreme undervalued level so this says to the analyst that Bitcoin is a little bit like a coiled spring, and we could be seeing an explosion higher second half of the year.
Bitcoin Rainbow Chart:
Next up we have a Bitcoin rainbow chart, and this is a log rhythmic progression again you can see the cycles so we have the 2013 cycle here 2017 cycle and where right now it’s color-coordinated. So, if it gets into the deep red this is maximum bubble territory, then we have cell seriously cell, then the FOMO is intensifying is this a bubble huddle, still cheap times to accumulate by and this one is a fire sale. So, where are we right now so it did go into this category which was when the fear of missing out was intensifying and we’ve now pulled back into still cheap territory so quite a cool chart that if correct it says that the market right now is pretty cheap?
Altcoin season chart:
3rd and final is this old coin season chart so, you may have heard that there are times when Bitcoin outperforms everything else and there are times where altcoins outperform Bitcoin and you can see this is pretty cyclical. So, if it’s below this line here this is Bitcoin season when Bitcoin is outperforming, and above here is all coin season where all coins are outperforming Bitcoin, and you can see it’s pretty cyclical where it’s going web big coins outperforming then altcoins then Bitcoin then altcoin then Bitcoin then altcoins. You will have noticed in the last few months old coins were outperforming Bitcoin, but this chart seems to suggest that the trend may now be reversing in times of crisis people generally flood back to Bitcoin. So, this indicates to the analysts that the trend could be reversing, and it would be Bitcoin that leads us out of this crash.
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