June 22, 2021

Bitcoin Price Likely to Reach $50K Soon According to This Indicator

2 min read

Although bitcoin backtracked a little after coming 4% far from $50,000, a widely known indication has actually suggested that the cryptocurrency could top that level soon. This prediction is based upon the escalating quantities of stablecoins deposited to centralized exchanges in the past 24 hours.

Bitcoin To Top $50K Soon?

CryptoPotato reported the ongoing trend in the cryptocurrency markets initiated by Tesla’s purchase of $1.5 billion in bitcoin. Naturally, such a massive statement triggered an instantaneous reaction for the BTC price, which rose from $39,000 to a new all-time high of over $48,000 in less than a day.

Bitcoin has backtracked a little given that its record and currently hovers above $47,000. However, CryptoQuant data, provided by the company CEO Ki Young Ju, recommends that the property could be primed for another breakout into uncharted territory.

Ju described the “stablecoins deposit signal” for his rate prediction. The sign follows the number of deposit wallets in all kinds of stablecoins streaming into all exchanges by block. If the metric goes above 80, the cost will “most likely be a short-term bullish like 1-5%.”

Bitcoin Price / Stablecoins Flows To Exchanges. Source: Crypto Quant

Bitcoin Price/ Stablecoins Flows To Exchanges. Source: Crypto Quant As the chart above demonstrates, the metric worked out above 80 several times in the previous 24 hours. After each, BTC’s price indeed went higher. Currently, bitcoin has to do with 6 % far from $ 50,000. However, the stablecoin deposits to exchanges are significantly greater than 80, which might undoubtedly trigger a rapid breakout to the coveted price tag.

Worry And Greed Index Goes Parabolic

It’s also worth exploring the popular Fear and Greed Index, which calculates numerous types of information, including volume, surveys, volatility, and social media, to offer the investors’ basic beliefs towards the current BTC market landscape.

The results vary from 0 (extreme worry) to 100 (severe greed). Somewhat expectedly, it blew up in the past 24 hours to a state of severe greed at 95. This is the greatest the metric has actually been since early December when BTC chose another rate record at the time.

Bitcoin Fear And Greed Index. Source: Alternative.Me
Bitcoin Fear And Greed Index. Source: Alternative.Me Nevertheless, it’s worth keeping in mind that the F&G index could likewise suggest that the property’s price has participated in bubble area. In the past, BTC had actually retraced multiple times when the sign was in a similar, extreme greed phase.