Bitcoin price up 

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Key Bitcoin indicators show that the cryptocurrency may be in for a big bull market in the near future. The last time this happened was back in 2017 when Bitcoin rose to its all-time high value i.e. $20,000 and shattered all previous records. Currently trading at around $11,000, Bitcoin is likely to set a new all-time high target this time around, possibly much more than the $20,000 itself, perhaps several times more than that!

Recent Happenings

Last month was a pretty passive one for the Bitcoin industry. The whole month saw a see-saw of price movement largely between $10,300 and $11,000 rarely looking to either scale the 11k figure or drop below the $10,300 one. So, it was a pretty uneventful month. However, despite this slow month, there is considerable anticipation around the near future of the cryptocurrency sector especially Bitcoin’s. It has been a historical phenomenon that Bitcoin moves violently either upwards or downwards after prolonged periods of consolidation and the nature of the breakout remains proportional to the time elapsed by the consolidation process. Currently, Bitcoin has stuck between sideways trading for more than 3 months between the $10,000 and $12,000 figure with no serious movements above and below. So, the longer this period of consolidation occurs, the bigger price movements we can expect in the near future. Now the price could move in the downward direction as well theoretically which would invite sellers to go on a massive price dump while buyers can take advantage of it. But, according to latest indicators and technical studies, the upside move has a much larger probability of happening rather than the downside. The recent move from $10,300 to $11,000 shows that the bullish intent is still strong despite the bulls apparently losing steam over the last 3 months and failing to push the price above the long-term price barrier of $12,500. 

Key Bullish Indicators

Accumulation of Bitcoin Outside Exchanges

Cryptocurrency exchanges are spot trading facilities for users around the world. The number of Bitcoin being held there is often used in day trading and as a result, it can be safe to assume that this amount is not generally used in HODLing. Now recently, the amount of Bitcoin being stored in the wallets of these exchanges has seen a drastic cut. This means that instead of using their Bitcoins for trading, users are moving them to personal wallets for long-term HODL and that always creates a buying pressure on the cryptocurrency price index. According to top crypto analyst websites Glassnode and CryptoQuaint as well as famed analysts like Willy Woo, this accumulation means that there is an increased demand for Bitcoin as a long-term asset. 

Woo tweeted:

“When coins on spot exchanges drop, it's a sign that new buyers are coming in to scoop coins off the markets and moving them into cold storage HODL, we are seeing new HODLers right now. Very macro bullish.”

But, the flight of Bitcoin from these traditional exchanges can also meant that the amount is moving to other types of exchanges like for example the decentralized exchanges like UniSwap and others but that is not the case according to analysis from CryptoQuaint. It states that the current exodus from exchanges like BitMEX is among the mix but instead of the crypto moving to other exchanges, most of it is migrating to personal wallets. This behaviour was also witnessed back in 2017 before the start of the big bull run that resulted in a price appreciation to the historic $20,000 high. So, safe to say that if this trend continues, we will have more Bitcoin in long-term positions and therefore the actual exchanges will have less crypto overall, thus creating a heavy demand for Bitcoin in the near future. 

Record New Bitcoin Addresses being Created

In addition to accumulation of Bitcoin, new addresses being created in the Bitcoin network have also reached record high levels. Normally, the new addresses are between 5,000-10,000 new addresses every day but, recently, they have increased more than 100% with figures as high as 22,000 reported. This figure is in part fueled by the Chinese government’s new public advertising campaign to raise awareness about the new sector but whatever the reason may be, it seems that more and more people are now interested in the crypto world and are looking to open their accounts with the new public addresses. 

The newly created Bitcoin addresses are nearing 2-year highs and that will definitely drive the price further upwards even if the new addresses make only small purchases of the cryptocurrency. The Chinese advertisement regarding the sector shows an inclination of the Asian government to open up the country for the sector which has a blanket ban right now especially for domestic use. 

The DeFi Slump Diverting Money to Bitcoin

The biggest story in 2020 in the crypto sector was that of the Decentralized Finance applications sweeping the place. Platforms like UniSwap have become increasingly popular because of their decentralized nature and ability to list any project without the usual scrutiny and legal issues. This resulted in the creation and popularity of massive new projects like the ChainLink platforms and gave rise to numerous smaller ones too. 

But, now this sector is undergoing somewhat of a slump which is especially reflective during the proceedings of last month itself. The sector has lost upwards of 50% in value for many tokens while still others have depreciated by more than 70% overall. But, the DeFi sector’s loss is Bitcoin’s gain as it has remained largely stable during this time and as a result, it has gained some of its market share that was lost during this time. If this sector will continue to decline in the coming days, it can be safely said that Bitcoin will keep going on the rise as investors will stay away from it and store their money in Bitcoin which is a much more stable asset. 

Other smaller indicators that show an incoming bullish trend on Bitcoin include increased attention from investment groups including a sizable investment from Square of the figure of $50 million. The overall hash rate or the amount of computing power dedicated to the network is also breaking all-time records easily and thus, causing the price to appreciate. 


The indicators are extremely positive and may result in a healthy price increase in the near future. The $11,000 figure right now may easily be breached in the short-term and the index will move to the biggest hurdle of the year i.e. $12,000. If the price shoots past this amount with ease and the next hurdle at $13,500 we may see a challenge of the $20,000 soon and after that, the sky's the limit for the cryptocurrency. However these are long-term hurdles and it will be a challenge to overcome them in the immediate short-term.