Slow and Deliberate BTC Prices Give On-Chain Signals Ample Breathing Room!

3 min readNov 10, 2021

Bitcoin is exchanging hands within a trading range between $67,000 and $57,000. Unlike earlier explosive moves, the cryptocurrency’s slow and deliberate grind higher has provided ample breathing room for on-chain indicators to slowly catch up without setting off any fire alarms.

The largest pumps of the cycle have yet to come.

Let’s dig in.

JPMorgan Doubles down on $146,000 Bitcoin Price Prediction

Global investment bank JPMorgan has doubled down on its bitcoin price prediction of $146,000. However, the bank’s analyst outlined several price-points ranging from $30,000 to the elusive 6-digit figure, providing a somewhat muddy technical picture.

Check out the full article here!

Technically speaking

Bitcoin exchanges hands in a range

First things first. On a weekly time-frame, BTC/USD closed above $63,300 on Sunday after having printed 2 weekly doji candles in the weeks prior. The market has transitioned from indecision to action as prices threaten to jump into all-time high territory within the span of three weeks.

But despite the positive development, bitcoin is technically in a range until it can close a daily candle above the previous all time high set on October 20th.

The technical target of the falling wedge mentioned this time last week has technically been met, and it remains to be seen whether bulls have enough fuel in the tank to propel prices above the $70,000 level on the second attempt to new highs.

Notably, the weekly time-frame is primed and ready to go to the next psychological target, with the $74,000 level representing a mere 10% move from $67,000. As price-discovery inches higher and higher, seemingly massive moves in fiat terms will increasingly represent smaller values percentage-wise. It’s important to retain perspective in these parabolic times.

Room for Growth

In terms of on-chain activity, nothing has changed since last week. On-chain data is still telling the same story. The MVRV-Z score is well below ‘overbought’ territory with ample room for expansion. Previous impulsive moves in late 2020 and early this year recorded 100%-plus percentage gains after all-time high breakouts.

Similarly, Bitcoin’s net unrealised profit/loss is not within the vicinity of exhaustion. In fact, it looks primed to start running again.

Unlike the last run-up to all time highs where prices ‘front-ran’ on-chain fundamentals, the current move higher is slower and more deliberate. Bitcoin is appreciating in a sustainable manner within a healthy uptrend. If this sustainable trend continues, it could be some time before warning signs appear.

Analysts like Will Clemente has long called for an imminent supply squeeze, which is due to hodler behaviour and increasing demand. In this case, the fireworks haven’t even started yet.

Catch you later.

p.s. This is my opinion. It is not financial advice.

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