Bitcoin- Fundamental analysisIn nutshells, BTC is short-term bearish and mid-term and long-term bullish
The longer the BTC price stay away from 3.4k, the less likely the 3.4k will be revisited again. Three failed attempts at 10k have signaled the short-term bearish sentiment. Low volatility and volume in the past month could be the precursor to the big price movement.
Fundamental factors-
*After the halving on May 11th, the hash rate dropped more than 40%. Two days ago, Bitcoin difficulty lvl recorded its biggest change of +15% since January 2018. There was no sharp price decline after the halving as some have predicted.
*2020 is the year in which Fed exercises unprecedented monetary stimulus. This week, Fed starts to buy privately-issued individual corporate bonds from primary broker.
*Various surveys indicate millennials' trust in BTC increase as their trust in traditional banking decline. In addition, baby boomers are slowly warming up to BTC.
*The # of Bitcoin whales, or addresses that hold at least 1,000 BTC, is reaching levels seen before the 2017 market euphoria
*According to glassnode, # of addresses holding 0.1+ coins reached an ATH of 3,069,763.000 two days ago, which indicates the robust retail demand
*Nearly 60% of total Bitcoin is dormant for at least a year, which might indicate the HODL sentiment that investors expect the BTC price to go up.
*According to the historical data, Mayer multiple indicates that investor would achieve better results by accumulating bitcoin when the ratio is below 2.4. Currently, it stands at 1.13
*Between May 2019 and May 2020, the value of Grayscale’s Bitcoin investment trust surged 76% from $1.9 billion, indicating a strong institutional demand.
Currently in choppy no trade zone. Scale in slowly between 8.5k-8.8k. Flip to shorts if price breaks down convincingly below 8k.
