<

These signs indicate Bitcoin bull run is on the horizon

Bitcoin continued to move sideways for the eleventh consecutive week. At the time of writing, King Coin is trading in the mid-$ 9,100. Although this market is unpredictable, a trader is sure that a higher chance of a rally is possible.

Bullish signs

According to the analysis of trader “Crypto Michaël,” there are four signs that signal an increase:

  • This measure is currently trading above the 100- and 200-day simple moving averages.
  • The volume of the cryptocurrency market, which somewhat represents the volume of Bitcoin, has witnessed an accumulation of madness.
  • The volume has recently started to decline, indicating a big move is about to occur.
  • We have taken all lows as the cryptocurrency market has seen limited volatility in recent weeks, meaning an upward break is more likely.

Crypto Michaël is not the only one who thinks Bitcoin will soon rise higher.

Mike McGlone, the senior commodity analyst at Bloomberg Intelligence, recently shared:

“Volatility should continue declining as Bitcoin extends its transition to the crypto equivalent of gold from a highly speculative asset, yet we expect recent compression to be resolved via higher prices.”

He added that Bitcoin should trade over $ 12,000 due to the strengthening on-chain case.

Investors are accumulating

As Bitcoin price increased and more individuals entered the space, an increasing number of BTC was held in exchange addresses. This trend could be a byproduct of the emergence of less technical investors, along with the rise of altcoins.

Luckily for the bulls, the data shows that the total amount of Bitcoin on exchanges has started to decline at a rapid rate. This is a good signal for the market because the decrease in exchange balance shows that there is also a reduction in selling pressure.

According to data from blockchain analysis firm Glassnode, the balances of all major exchanges (Coinbase, Kraken, Bitfinex, etc.) dropped from ~ 2.85 million BTC in February to 2.6 million today.

The last time this figure witnessed such a strong lower move (as a percentage) was in 2016. What happened then, of course, was that the 2017 bull run brought Bitcoin from $ 1,000 to $ 20,000.

Bitcoin 2

Source: Glassnode

The bullish implications of movements in exchange balances have been echoed by Ki-Young Ju, chief executive of Crypto Quant.

The CEO shared the data showing that Bitcoin is in a macro accumulation range:

“We are in the BTC accumulation phase. The 30- and 90-day moving average gap of all exchanges’ reserve represents the downside risk. It hit a record low in May this year and is still below zero… Looking at the history of Bitcoin since 2015, we can see that whenever it touches zero or going negative, the downside risk decreases, meaning the accumulation phase.”

Bitcoin 3

Source: CEO CryptoQuant Ki-Young Ju

The existence of a strong accumulation mindset has been corroborated by exploration statistics shared by analyst ” PlanB”. He said about three-quarters of Crypto Twitter is HODLing or buying Bitcoin, while only 13% are selling.

Not to mention, the data shows that the number of addresses holding at least one BTC is consistently reaching new all-time highs. This happened despite the March shakeup and ongoing consolidation.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS