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Is Bitcoin in early bull phase? Refer to these metrics for an answer

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Is Bitcoin entering early stages of bull phase? Refer to these metrics for an answer
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  • Bitcoin entered the early stages of a bull phase, as per CryptoQuant’s data.
  • A decline in Bitcoin returns compared to other cycles was observed.

Bitcoin has entered the early stages of a bull phase, according to recent data provided by CryptoQuant.

Now, you might ask for a more detailed explanation. Well, for that purpose, consider the bull/bear market indicator- It is a metric that compares the number of days the market spends in a bullish phase to the number of days it spends in a bearish phase.

The reading of this metric suggested that the market could continue to move in a positive direction for a while before things take a bearish turn.

Source: Crypto Quant

BTC holders await patiently

However, a lot of Bitcoin holders still weren’t profitable, suggesting that they would be waiting for the prices to go further up before selling their positions.

According to ecoinometrics’ data, there was a major lag observed in Bitcoin’s returns compared to other cycles. This could be due to several factors, such as investors’ sentiment, regulatory environment, and economic conditions.

One of the reasons for the growing prices could be the lack of movement from whales, which are large holders of Bitcoin. These whales have been known to manipulate the market by buying and selling large amounts of Bitcoin. Possibly, their refusal to sell their positions in the current market could be contributing to the current bullish phase.

Read Bitcoin’s Price Prediction 2023-2024

Additionally, the issuance of Bitcoin across various addresses also played a role in the current BTC price rally. For example, Shrimps, which are smallholders of Bitcoin, added 107% of top Bitcoin’s issuance, while Crabs, which are medium-sized holders, added 120% of issuance.

Source: glassnode

Traders turn skeptical

Despite the growth of BTC’s prices and issuance, the trust of traders in BTC declined. The number of long positions on Bitcoin tumbled as prices rose, per coinglass data.

However, the number of long positions still outnumbered the number of short positions by a small margin. But this could change soon if the number of short positions against BTC grows.

How much are 1,10,100 BTC worth today?

Source: coinglass

It remains to be seen whether the traders turn out to be right about the future of Bitcoin in the long run.

Well, at the time of writing, the price of Bitcoin was $23,183.17, and it increased by 2.28% in the last 24 hours according to CoinMarketCap.

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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