Bitcoin price stables around $40,000, is this the start of a new bull-run cycle?

Bitcoin price has been on the rise since July 20, after it hit a local low of $29,278. So far, it has hit a high of $40,900 on July 28. At the moment, BTC is trading at $40,300, recording a 27% gain over the past seven days. There are quite a few people who assume that if this is a new bull-run, we need to confirm that the network power is also recovered to the previous level.

Is this the beginning of a Bitcoin price bull run when whales are shifting 434,000 BTC?

Bitcoin price seems to have cooled down a bit at around $40,000. However, a consolidation around this area, which is also serious support, could potentially be positive. Much of the market is also fairly neutral, with a lot of altcoins charting insignificant losses.

Accordingly, Whale Alert has spotted almost 50 consecutive transactions, carrying a total of over 465,000 BTC: an equivalent of a mind-blowing $18,615,810,000. The transactions were made between anonymous crypto wallets. In four of them, Coinbase took part. Now, large chunks of these Bitcoins have been moved as the leading cryptocurrency has recovered itself above $40,000.

As AZCoin News reported, around 44 consecutive Bitcoin transfers were spotted by Whale Alert, each of them carrying between 9,000 and 9,900 BTC on average. These transactions were made between anonymous wallets. The largest transaction carries a lump of over 10,000 BTC.

Besides, five transactions were made with the participation of Coinbase, shifting 59,800 BTC in four transfers, 19,200 BTC, and four lumps, carrying 10,200 each. It seems that whales are also bewildered about the upcoming situation of Bitcoin.

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According to CryptoQuant research, if it is the new bull-run cycle, it should be confirmed that network power is also recovered to the previous level.  NVT Golden Cross, a network indicator, is currently at a neutral level, like the Crypto Fear and Greed index.

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Crypto Fear & Greed Index as of July 29 | Source: Alternative.me

Due to the regulations on Chinese miners and price dumping, network activity has become very weak.

“Let’s take a look at the Bull-Run in 2013 and 2017. For another bullish cycle to come like the last bull market, network activity must be recovered. If network activity does not maintain the previous 20-21 bull-run starting point level, We should doubt whether the new bull-run cycle is right,” CryptoQuant stated.

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Source: CryptoQuant

Some reports also mention the impact of $50,000 call options. How will it reflect on the current market?

A report from Bybt shows that traders have opened more than 10,900 worth of Bitcoin positions on the $50,000 call options. The recent Bitcoin options expiry has led to interesting volume movements on new Bitcoin options that are offered on the derivates market.

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Current open interest has hit almost half a billion dollars on the $50,000 option calls | Source: Bybt

Options are not used to directly trade and bet on any Bitcoin price. But due to high market volatility and rapid growth of Bitcoin, we may face a situation in which private traders are trying to make good profits by buying into high-risk assets. It is most likely that put options are being used to hedge large long positions on the market.

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