Despite a 5% dip in Bitcoin (BTC) value during the second week of December, dropping to $42,236 from a 19-month peak of $44,700, there are compelling reasons to believe that the Bitcoin Bull Market is far from finished. This short-term decline came on the heels of an impressive 62% surge over two months, which saw Bitcoin rise from $27,162 in October to a key resistance level around $44,000. While banking behemoth J.P. Morgan cautioned that Bitcoin was overbought after surpassing the $36,000 mark in mid-November, blockchain analytics firm CryptoQuant insists that Bitcoin is still in a bull market. Here are eight indicators that the Bitcoin Bull Market is still very much alive:
1. Block Mining Time Remains High
Currently, the Bitcoin network is so densely populated with miners working to securely process transactions that the core protocol has adjusted BTC’s difficulty target to a record high of nearly 68 T. This implies that the network is striving to cope with the massive hash power being added to secure Bitcoin and maintain a steady production of new blocks, approximately every ten minutes.
2. BlackRock’s Interest in a Bitcoin ETF
BlackRock, Inc., the world’s largest asset manager with $9.42 trillion in assets under management, has expressed its intention to launch a regulated Bitcoin ETF for its clients. This is a clear indication of the times and the market conditions that Bitcoin is currently experiencing.
3. Unmoved Bitcoin Indicates Strong Conviction
Publicly available blockchain data reveals that about 70% of Bitcoin, equating to 13.65 million BTC, hasn’t moved in the past year or longer. This suggests a high rate of long-term holders and indicates strong investor conviction that the Bitcoin Bull Market is far from over.
4. CME Group Surpasses Binance in Futures Volume
Open interest in Bitcoin futures contracts on the CME Group (Chicago Mercantile Exchange), the world’s leading derivatives marketplace for regulated investors, recently surpassed that on Binance, the largest cryptocurrency exchange. This shows continued institutional interest in Bitcoin by regulated investors.
5. Bullish Signal from Bitcoin Futures
Bitcoin futures markets on CME flashed a rare bullish signal in late November known as Contango. This occurs when there is a premium gap between the next month or some future month and the front month. This event is considered a very bullish sentiment.
6. Large Bitcoin Purchases by Whales
Whale-sized Bitcoin purchases are making waves in the market. The count of BTC whale addresses, holding between 1,000 to 10,000 BTC, spiked in August, just before the October bull run. This indicates that well-capitalized entities are eagerly buying the dip.
7. Bitcoin Price Follows a 4-year ‘Flag Channel’ Pattern
Bitcoin’s price chart is following a specific pattern of a parabolic price run-up that it has charted in previous 4-year BTC cycles. This pattern has been a reliable signal of a Bitcoin Bull Market in the past.
8. Bullish Price Predictions by Analysts
Many analysts have been making very bullish predictions since the rally began in October. Predictions range from $47,000 by the end of January to $700,000 per 1 BTC in 2024 or 2025.
For those interested in tracking these indicators and more, the cryptoview.io application provides a comprehensive and user-friendly platform to monitor the Bitcoin market trends.
While the Bitcoin Bull Market may experience occasional dips, the overall trend remains positive. The above indicators suggest that the bull market is still very much in play, and Bitcoin continues to be an attractive investment for both individual and institutional investors.
