Top 3 Reasons Pushing Bitcoin UP to its next target at $11,500
Hope everyone’s making out well in the current Bitcoin bull run. Here’s some further analysis, prepared by our Director of Research Alex Sovpel. You may have heard the name before on TradingView, where Alex’s ideas have been gathering tens of thousands of views. We’re here today with a quick, in-depth fundamental analysis of the **Top 3 Reasons Pushing Bitcoin UP to its next target at $11,500.**
**Reason 1:** Buy-side participants in Bitcoin on US regulated futures markets was 81.14% net long as of May 7th.
This is the highest share of net long positions in Bitcoin’s history, and this imbalance means that both investors and traders are looking increasingly bullish, meaning that there are higher expectations of price appreciation for Bitcoin.
**Reason 2:** Research shows that Bitcoin is being used as a hedge in the US-China trade war.
There’s historical evidence to support the idea that Bitcoin is increasingly being used
as a ‘safe haven’ asset during times of turbulence in traditional markets. For example, Bitcoin’s price reacted positively during various banking crisis’ of the past few years. It’s also reasonable to assume that the Chinese government’s recent actions in banning crypto payments on Wechat and other platforms are a crackdown on Chinese capital flight into cryptocurrencies. While the trade war continues, there’s a good reason to believe some investors will continue to purchase Bitcoin.
**Reason 3:** Bitcoin network’s fundamentals are improving.
The number of unique addresses used in the Bitcoin network has risen to around 600k per day by mid-May, and the amount of daily confirmed transactions have hit a 12-month high at 452k. This shows us that the network itself is growing and becoming stronger, giving investors confidence in Bitcoin’s long-term health. We believe that the current upward trend in the Bitcoin price reinforces the positive trend in Bitcoin fundamentals, which generates a positive signal for Bitcoin investors.
**The Takeaway:** These three reasons show increasing bullishness of investors and traders that have been pushing Bitcoin’s price upwards. In addition, these reasons will most likely hold for the coming month, further increasing the chances of **Bitcoin’s price appreciation to its next target at $11,500.**
Also, take a look at a more detailed analysis, supplemented by a trading strategy and signal, published on TradingView: TOP-3 SIGNALS showing Bitcoin will GO UP to $11,500
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