Bitcoin’s retention rate hits 9-month high, raising hopes of a ‘bullish flag’ rally to $ 70,000

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A year-long price hike in the Bitcoin (BTC) market and hopes for upward movements in the future have prompted traders to hold onto the token instead of trading it for other assets, according to the reports. data from Glassnode.

The blockchain’s data analytics service revealed on October 28 that the total amount of “hidden or lost coins” had peaked at over 7.21 million BTC in nine months. Simply put, the Bitcoin metric reflected an increase in uncirculated tokens – those that may have been stored in cold wallets by long-term holders or lost due to human error, with little chance of recovery.

BTC amount of HODLed or lost coins. Source: Glassnode

As a result, the total number of lost / stuck Bitcoin has exceeded 34% of its total supply of 21 million tokens, making cryptocurrency more scarce.

More evidence of a Bitcoin supply shock

Other data provided by CryptoQuant showed that the amount of Bitcoin reserves held on all crypto exchanges fell to its lowest level since August 2018 – to 2.337 million BTC on October 28, 2021.

Meanwhile, the Miners Position Index (MPI), which measures the ratio of BTC leaving all miners’ portfolios at its 1-year moving average, has been trading below zero since March 6, 2021, suggesting a strong accumulation among minors.

Bitcoin all foreign exchange reserves and miners position index. Source: CryptoQuant

“The amount of Bitcoins [owned by miners] is at levels similar to … in May, when the price was below $ 40,000, ”noted a CryptoQuant analyst as BTC attempted to rebound after falling below $ 60,000 on October 26, adding:

“You can easily see how far ahead we are still ahead of the final bull run.” What BTC pricing techniques say

Bitcoin’s price correction from around $ 67,000 to $ 58,100 came after October’s 60% rally. However, BTC / USD has formed a range of parallel descending channels (purple), increasing the possibility that the pattern is a bullish flag.

BTC / USD daily price chart with Bull Flag setup. Source: TradingView

Bulls Flags are bullish continuation patterns that send the price in the direction of their previous trend after a period of downward consolidation. In doing so, the technical indicator aims its upside targets at a length equal to the size of the previous uptrend, also known as the flagpole, once the price breaks the upper trendline of the flag with higher volumes.

Related: Is the Price of Bitcoin Mimicking the Bullish Race of 2017? Discover The Market Report with ETF expert Eric Balchunas

The Bitcoin Flagpole is approximately $ 15,000 in length. This means that the cryptocurrency could technically rise up to $ 15,000 from the breaking point. The Fibonacci levels in the chart above may function as lows to support the rebound to or above $ 70,000.

However, not all traders are convinced that the current pattern is bullish in the short term.

“Some would say this is a bullish flag, and it is possible. But the volume characteristics indicate a decline from here, most likely, at IMO,” commented the crypto trader. pseudonym Alex.

Trader Pentoshi added that a break below recent lows of $ 58,000 would be bad news for the bulls. He said:

“BTC at $ 58,000 to the dollar What if this is a big bullish flag and we are in a bull market where the bullish flags are breaking? Now in theory the price shouldn’t go back to these lower or Bitcoin is struggling from 64,000 to 29k 29k backup with only 2 misfires on the macro during that time. “

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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