Exchange balances are dropping and that’s a bullish indicator that may propel Bitcoin to a new all-time high, according to Danny Scott.
Scott, chief executive of Isle of Man-based crypto exchange CoinCorner, notes on Twitter that people are buying BTC and stockpiling it in cold storage.
Explains the CEO,
“The only time exchange Bitcoin balances dropped for a consistent period was 6 months in the build-up to the 2017 bull run.
We’ve now passed 12 months and [it is] dropping significantly.”
Scott also notes that if Bitcoin follows previous April trends, its price will balloon next month.
“Law of averages gives Bitcoin an $83,000 price target for April. Average over 10 years in April +51%”
The exchange CEO tells Forbes that a historical average like that could potentially have actual power in the market.
“There have only been two negative Aprils since bitcoin began – in 2014 (-6%) and 2015 (-4%) – which is tied coincidentally with the following month of May with only two negative months –2015 (-1%) and 2018 (-18%) – so maybe there is some momentum and truth from this.”
Additionally, Scott points out that Bitcoin’s hash rate continues to hit all-time highs, which he says creates more security for BTC.
More miners, more hash rate = more security for Bitcoin.
— Danny Scott (@CoinCornerDanny) March 27, 2021
After hitting its all-time high of $61,711.87 on March 13th, Bitcoin lost steam and briefly fell under $51,000 last Thursday. In the four days since it has partially rebounded, however, and is trading at $57,250.67 at time of writing, according to CoinGecko.
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