According to CryptoQuant, the Index Bitcoin Cycle Indicators have left the accumulation region (buy signal) for the first time in a year, entering the historical trend transition phase. This period, marked in yellow, has historically signaled macro trend transition phases of Bitcoin cycles, indicating that the market has exited from a bear market to a bull market or from a bull market to a bear market.
While it may be early to definitively say that we have exited the bear market, the 7 Bitcoin cycle indicators that have historically pointed out top/bottom periods accurately are indicating a trend reversal. The Index has remained in the Accumulation range between 75%-100% for at least 365 days, providing a buy signal and indicating a historical accumulation trend.
The CryptoQuant dashboard provides further details on how the Index Bitcoin Cycle Indicators were put together and allows for an examination of accumulation and distribution moments in the market history since 2012. Since April 2022, the index has signaled a buy, and there is confluence regarding time related to Bitcoin Halving compared to previous accumulation cycles.
It should be noted that at the COVID DAY event in March 2020, the Accumulation region (75%-100% green line) was reached again during the trend transition phase, which is a first in the index’s history. Based on historical data, it is likely that Bitcoin has entered its transition phase from a bear market to a new bull market. However, this does not mean that we will hit a new ATH (all-time high) later this year, but rather that we will not seek new lows.
This news is sure to have an impact on the cryptocurrency market, with many traders and investors likely to adjust their strategies based on these indicators. As always, caution is advised when investing in any asset, and it is important to conduct thorough research and seek advice from professionals before making any financial decisions.
Read more:
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