Bitcoin analyst gives 4 reasons why BTC price will hit $22,000 next

Analyst and the creator of Lookintobitcoin.com, laid out four reasons why BTC is headed to $22,000.

The one-year HODL percentage, the decline of Bitcoin exchange reserves, neutral funding rates, and institutional accumulation point toward a prolonged BTC rally.

"1yr HODL % still really high? Yep. Bitcoin being rushed off exchanges? Yep. Funding still neutral? Yep. Institutions still buying? Yep. Cool, See you at $22K in a few weeks when price reaches the 350dma x 2 of the Golden Ratio Multiplier."

Since the start of the fourth quarter on Oct. 1, the price of Bitcoin rose from $10,773 to $16,730 on Binance.

The Bitcoin space refers to long-time BTC holders as "HODLers." The One-Year HODL Wave shows the growth in the number of investors holding BTC for over a year.

During bull cycles, the funding rates of Bitcoin can significantly spike as long holders or buyers overwhelm short-sellers.

The Bitcoin futures market uses the funding rate mechanism to ensure balance in the market.

The average funding rate of Bitcoin perpetual futures contracts is at around 0.01%. Throughout the past several months, the funding rate has remained at around 0.01% or sometimes below it.

The $2.3 billion monthly Bitcoin exchange outflow suggests the intent of investors to hold onto their BTC holdings throughout the long term.

The Grayscale Bitcoin Trust is the closest investment vehicle to an exchange-traded fund, as it publicly trades in the U.S. According to Grayscale, the firm now holds more than 500,000 BTC, which, at a price point of $16,700, is worth over $8.35 billion.