It is almost a full-fledged bear market right now. But the market is indicating four signs for a bullish reversal. What are they?
The price of Bitcoin is more than 70% down from its all-time highs. Bitcoin has been in a downtrend since Nov 2021. The price seems to be settled in the range between 18,000 to 20,000 from the past couple of weeks.
However, there are some signs of a bullish reversal in Bitcoin.
The significant rise in institutional investment
The price of any asset primarily depends on big money investment. It seems like institutions are buying the dip. Institutional and Venture Capitalist money is being poured into the crypto markets.
The interest from institutional investors is primarily due to their clients who demand exposure to Bitcoin and crypto in their investment portfolios. Furthermore, many more institutional investors are awaiting some clarity on crypto regulation by US lawmakers. The increase in institutional investment will result in a bullish reversal for entire crypto markets.
Whales appear to be accumulating BTC
The stagnant price action isn’t stopping whales from accumulating BTC. According to data from CryptoQuant, Binance spot trading volume dominance skyrocketed to 84%. The increase in spot trading volume may indicate that the buyers are interested in holding the delivery of BTC and not just in trading the futures.
On top of that, more than 48,000 BTC were withdrawn from exchanges this week. This is a major sign that some whales bought the BTC on the spot and took its custody in their wallets.
Furthermore, BTC spot trading volume for all exchanges increased 20x over the past six months. This indicates that whales are gradually accumulating BTC, and sooner or later, there will be a bullish reversal in crypto markets.
Bitcoin hashrate at an all-time high indicates a bullish reversal for crypto markets
According to data from Glassnode, the Bitcoin hashrate is at an all-time high. The increase in Bitcoin hash rate indicates more competition among the miners, and thus miners are bullish on BTC. It causes miners to team Bitcoin rather than sell them.
Long-term HODLERS are not selling BTC
Despite the market volatility, long-term holders still have faith in BTC. According to data from Glass node, long-term holders hold over 13.62 Million Bitcoins. Bitcoins have been dormant for more than 155 days and are less likely to be spent during market volatility.
These four signs indicate that the crypto market is near the bottom and can soon see a bullish reversal.
Got something to say about this bullish reversal in crypto markets or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on Tik Tok, Facebook, or Twitter.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.