Mystery buyers scoop up supply as Bitcoin price hits bull trigger

Bitcoin Dogecoin Price prediction Analysis
Bitcoin Dogecoin Price prediction Analysis

Mystery buyers scoop up supply as Bitcoin price hits bull trigger – Bitcoin (BTC) is due for a fresh price surge if one classic price model repeats historical behavior — and buyers are still supporting it.

In a tweet on Tuesday, analyst William Clemente III noted that BTC/USD has reached a bullish springboard zone on the stock-to-flow model.

Analyst “likes odds” of the stock-to-flow induced bull trigger.

Despite lingering far below stock-to-flow projections on a day-to-day basis, Bitcoin could now use that seemingly bearish signal to its advantage.

Stock-to-flow deflection — Bitcoin’s price relative to the model’s estimate — is now so wide that it has only been matched five times in Bitcoin’s history.

On each previous occasion, after reaching this lower deflection boundary, Bitcoin has “gone on an absolute tear” afterward.

“I like my odds,” Clemente III added in comments on an accompanying chart.

Bitcoin price hits bull trigger
BTC/USD stock-to-flow deflection chart. Source: William Clemente III/Twitter

As Cointelegraph reported, stock-to-flow creator PlanB, while worried about the recent BTC price dip, has stuck by his creation in the face of naysayers, predicting a minimum end-of-year price of $135,000. This, he has said, would be a “worst-case scenario.”

OTC buyers suspected as BTC transfers spike

Meanwhile, large-volume investor activity could already be helping suck up the “flow” component of the stock-to-flow bull case.

According to data from on-chain analytics service CryptoQuant, an unidentified market force is buying “a lot” of BTC — but not via exchanges.

“If big names announce they’re buying, bears could be in a trouble. I’m not sure about short-term price moving tho,” CEO Ki Young Ju noted on Twitter.

Bitcoin price hits bull trigger 1
Bitcoin fund flow vs. token transfers vs. BTC/USD annotated chart. Source: Ki Young Ju/Twitter

The phenomenon has already been caught by analysts, who nonetheless have urged caution with trading at current price levels as BTC/USD attempts to consolidate.

“I am a Bitcoin buyer above 40k or below 36k,” popular Twitter trader CanteringClark summarized Tuesday.

“Right here we have some long leverage accumulating.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Financial Watch. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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