Bitcoin is on its way to $ 22,000, according to one analyst. He also named four factors that keep the momentum going.
Bitcoin ( BTC ) analyst and Lookintobitcoin.com founder Philip Swift cited four reasons BTC was headed for $ 22,000.
The fundamental and technical factors suggest that the top cryptocurrency is gaining momentum
The percentage of HODLers holding Bitcoin for at least a year, the decline in Bitcoin exchange reserves, neutral funding rates, and institutional accumulation point to an ongoing BTC rally. Swift wrote :
„Is the percentage of HODLers who hold Crypto Wealth for at least a year still really high? Yes. Is Bitcoin being withdrawn from the exchanges? Yes. Is the funding rate still neutral? Yes. Institutions continue to buy? Yes. Cool, then see. Is the funding rate still neutral? Yes. Are institutions still buying? we’re down to $ 22,000 in a couple of weeks when it hits 350 DMA x 2 on the Golden Ration Multiplier. “
Since the beginning of the fourth quarter on October 1, the Bitcoin price on Binance has increased from $ 10,773 to $ 16,730.
HODLer percentage indicates investor confidence
In the Bitcoin sector, long-time BTC owners are referred to as „HODLers“. The one-year HODL wave shows that the number of investors holding BTC for over a year has increased.
Since the slump in March, the one-year HODL wave has risen from 59 percent to over 62 percent. It is now at an all-time high, which indicates a clear trend towards accumulation.
As the number of HODLers increases, it suggests that people want to buy Bitcoin and keep it for a long time. The ongoing trend could be an indication that investors expect an extended Bitcoin rally over the longer term.