Q4 could be Bitcoin’s best quarter this year

Towards the end of 2021, it appears that the fourth quarter was one of the best quarters for the crypto market, especially for Bitcoin. Analysts expect this final quarter to set the direction for the first few months of next year. So if you end the year with good results, 2022 will also be positive.

Bitcoin in the 4th quarter of 2021

The fourth quarter is almost halfway through, and observation of the price movement and behavior in the chain can produce an optimistic picture. In fact, the price has jumped $ 23,700 since Oct. 1, climbing to a new ATH.

Because of this, the market generally remains profitable. As long as the SOPR remains above 1.02, there is also no basis for a discount.

Bitcoin-adjusted SOPR | The source: Glass knot

Investor returns are also a crucial factor as they determine spending behavior. At the moment, the short-term hodler’s profit-loss ratio (STH) looks cheap. Furthermore, as with SOPR, as long as it is above 1 there is nothing to worry about for STH.

Profit and Loss Ratio of Short Term Holders | Source: Glassnode

Second, the long-term hold (LTH) hodler’s supply shock continues to decline. This shows that LTH is ready to distribute its assets to new investors, which was expected. This buying behavior by LTH is often a sign of strength in the market. And if STH’s profitability remains positive, the upward trend will continue in the near future.

Bitcoin supply shock rate from long-term owners | Source: Glassnode

This is also reflected in the Age Range of Volume Issued (SVAB), which shows that coins held for more than 6 months are the most widely issued group.

Age range of issued volume of Bitcoin | The source: Glass knot

So how can the fourth quarter bring the rebounds?

Bitcoin’s performance exceeded expectations during previous rallies in the fourth quarter. In 2017, when Bitcoin was still below $ 10,000, Bitcoin was up 218.5% by the end of the year, topping $ 10,000.

Also in 2020, when the ATH was at $ 14,000, Bitcoin rose 179.6% in the fourth quarter and broke the $ 30,000 ceiling.

Bitcoin performance in the fourth quarter of recent years | Source: TradingView

This year, as noted above, BTC is up 54% and there are still a month and a half to the end of the year. So if the crypto king continues this upward momentum, we could see some significant gains in 2022.

For the past 3 days, the downward movement of BTC is predicted as the result of the top of the market at ATH. That situation will soon be resolved, however, and Bitcoin continues to soar to $ 100,000 by the end of the year.

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Minh Anh

According to AMBCrypto

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