Bitcoin is currently trading at around $59k, up from $48494 a week ago. The price is up more than 17.42% in the past week. There was a drop in price from Feb 22, a drop of over 20% based on price data from CoinMarketCap. Based on this price action, it can be concluded that the recovery is now complete, on March 13, 2021.
After over 3 dips after the one on Feb 22, the price rally may have reset. One of the metrics that support this reset in the price rally, is Bitcoin’s Median Spent Output Lifespan (MSOL) (7-day moving average). MSOL’s value just reached a 1-month high of 2.595. The previous 1-month high was hit on March 8 and since then the price is up by over 11%.
Other popular signs of this reset are the asset trading $1000 away from the previous ATH, increasing the likelihood of hitting ATH and price discovery beyond. Besides, on the institutional front, MicroStrategy’s recent purchase of an additional 262 Bitcoins for $15 Million in cash, increased the average price of their Bitcoin holdings to $59146 per Bitcoin.
The average price is up from $24214 per Bitcoin to $59146, making it more likely that institutions will support this price level and reset the price rally. Another 100 Million USDC was printed in the past few hours and an increased inflow of stablecoins to exchanges signals a reset of this price rally. The altcoin rally is speeding past the volatility and returns on Bitcoin in the past week.
More specifically, 5 fast-rising altcoins have surpassed Bitcoin at least five folds in the past 7 days. These coins have registered weekly gains of more than 100%. In the top 100 altcoins based on market capitalization from CoinMarketCap, Chiliz CHZ ‘s price is up 696.28%, Theta Fuel TFUEL is up 160.95%, Ankr ANKR is up 142.61% and Decentraland MANA’s price is up 104.25%. An altcoin rally, with over 100% gains, in the top 100 altcoins based on market cap and signals a reset in Bitcoin’s price rally.
On-chain analysis and network indicators concur. However, the target remains the same, and post this reset as well, it is expected that the price may enter discovery mode post $60000, after hitting a new ATH. The S2F and S2Fx targets are yet to be hit in April 2021, however, the historic drop in price in March of every year, may not repeat in the current market cycle.