After new ATH of $41,940, amid the U.S dollar essential threshold suggested

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Bitcoin’s market value, momentarily, exceeded Tesla’s, as the price of the blockchain rose to a record ATH of $41,940. Despite BTC’s downturn in press time as a result of a surge of corrections, bullish sentiments say that Bitcoin is going for higher figures in the midst of the US dollar’s weakening and increasing institutional demand.

Although certain metrics forecast that rates will decline soon, this may be transient in the wider sense. In reality, only recently, Glassnode reported that Bitcoin’s Organization Adjusted Dormancy Flow had hit a critically bullish threshold.

Image Source: Glassnode

According to Glassnode and independent analyst David Puell,

“Entity-adjusted Dormancy Flow is the ratio of the current market capitalization and the annualized dormancy value (measured in USD). It can be used to time market lows and assess whether the bull market remains in relatively normal conditions. It helps confirm whether Bitcoin is in a bullish or bearish primary trend.

Dormancy integrates all these narratives into a single metric, by comparing both ratio components at all times, and displaying them in a simple oscillation by which, on a trending basis, high dormancy is bearish and low dormancy is bullish.”

Before the launch of the 2020 bull market, some investors maintained that the digital asset will climb above its old ATHs. At the moment, the predicted market dips came real, as some hodlers had already sold.
However, while recent market dynamics have seen BTC double from $20K to $40K in a matter of weeks, users still do not want to sell. This indicates that traders appear to believe in the ability of the BTC to hit higher numbers.

As for selling pressure on the market, Chainalysis says otherwise. According to the company’s numbers, BTC inflows to exchanges in the last 24 hours were as high as BTC 127.72 k, above the 180-day average. In addition, Glassnode noted that BTC Exchange Inflows (1-day Moving Average) had hit an ATH of $132,812,085.62.

Any additional market supply in exchanges could, however, be met by incoming demand. Tether’s inflows could also signal the build-up of the purchasing pressure. In fact, according to Chainalysis, USDT inflows to exchanges over the last 24 hours have been USDT 1.18B, also above the 180-day average.

Image Source: Chainalysis

Moreover, increasing trading intensity indicates that more market players prefer to buy than sell. BTC median trading intensity during the same time frame was 6.77, above the 180-day average, as seen in the picture below.

Image Source: Chainalysis

Furthermore, earlier today, Glassnode also reported a new ATH of active Bitcoin addresses on the chain. The last time these addresses registered such highs was back in late-2016/early-2017, at a time when the Bitcoin bull market had started.

Finally, even Skew has revealed that Open Demand in Bitcoin Options has risen over $10 billion in numerous markets, including the CME. Also, recent research showed that the enhanced understanding of Bitcoin as a store of value and hodling operation was a decrease of Bitcoin liquid. In reality, analysts have been suggesting that a rise in bitcoin illiquid will increase the scarcity, thereby drawing a “potentially bullish picture for bitcoin” in the next several months.

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