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According to crypto analyst PlanB, Bitcoin price is in line with the S2F model and is headed for a new ATH in the foreseeable future.
Bitcoin price is down approximately 4.4% in the past 24-hours to trade slightly below $40k at the time of reporting. According to market analytics provided by CoinGecko, Bitcoin was trading around $39,978.21, 5.2% down in the past 24-hours.
However, zooming out the Bitcoin US dollar derivative chart on the higher time frame, the bulls are in control. Notably, after experiencing a three-month continued dip, Bitcoin price closed July on a high note, slightly above $41,500.
Additionally, the leading digital asset by market capitalization closed the weekly bar above a critical resistance level, $39k. Previously, the asset tried to break out of this level twice to no avail. A close above it validates a rising trend, should the rally continue in the coming weeks.
More money has entered the crypto market in the past few months. Consequently, Bitcoin’s market capitalization has risen to $746,681,974,676 . To put the figure into a better perspective, payment giant Visa Inc (NYSE: V) has a market cap of $523.64 at the time of reporting according to MarketWatch.
On the other hand, MasterCard Inc (NYSE: MA) and Tesla Inc (NASDAQ: TSLA) have a market capitalization of around $380.86 billion and $680.34 billion respectively. With more money expected to flow in the second half of the year, Bitcoin’s market capitalization is estimated to surpass that of Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT).
Moreover, one of the leading European economies, Germany, has from today implemented a law that allows institutional investors to put up to 20% of their funds into crypto assets.
Bitcoin Price Technical and Fundamental Outlook
Bitcoin and the entire crypto market have been one of the highest return on investment (ROI) assets since the onset of the Covid crisis.
However, on-chain data provided by Glassnode suggest that long-term holders are selling with the recent price rebound. Perhaps the reason Bitcoin price has retracted below $40k in the past two days.
“Some long-term bitcoin holders are selling into this bounce with minimal profit as indicated by LTH-SOPR hitting this year’s low for two days straight,” noted Lex Moskovski, renowned analyst.
However, according to crypto analyst PlanB, Bitcoin price is in line with the S2F model and is headed for a new ATH in the foreseeable future.
Global mass crypto adoption has significantly helped the entire crypto market stay above $1 trillion market capitalization. Further, market pundits forecast more adoption catalyzed by the specific regulatory compliance in different jurisdictions.
In the United States, the debate over crypto regulations continues while the SEC receives more pressure to approve the first Bitcoin ETF.
Africa and Asia continue to move towards blockchain technology adoption and also cryptocurrency market regulations led by Nigeria, Tanzania among others.