- Bitcoin, the king of the crypto world, has been reluctant to turn its price movements into a bullish trend for a long time and has not been able to exceed the $30,000 level.
- Crypto analyst James V. Straten stated that Bitcoin has been trading below the short-term holders’ cost basis for three consecutive days. This situation had shown a similar picture in 2019 as well.
- Another positive development highlighted in Glassnode Alerts’ post is that BTC’s aSOPR (7d MA) metric reached its lowest level in the past 5 months at 0.99251.
The sharp drop in Bitcoin price may have scared investors, but current data shows that Bitcoin may soon enter a bull market.
Bitcoin May Enter a Bull Market in the Near Future
The Bitcoin price falling below $26,000 once again caused fear among investors. Bitcoin, the king of the crypto world, has been reluctant to turn its price movements into a bullish trend for a long time and has not been able to exceed the $30,000 level. However, if history repeats itself, BTC may enter a bull market in the near future.
This possibility seemed even more likely as an important metric showed a similar pattern it had seen in 2019, after which the BTC price had climbed. Not only that, other indicators also suggested the idea that Bitcoin may see a rally in the near future.
Crypto analyst James V. Straten stated that Bitcoin has been trading below the short-term holders’ cost basis for three consecutive days. This situation had shown a similar picture in 2019 as well, when BTC had left the bottom of the bear market. Therefore, it is believed that this situation gives hope for BTC to see a bull rally in the coming months.
A look at Bitcoin’s derivatives market showed that the coin’s price could rise. For example, when the price of BTC falls, the open interest also decreases. A decrease in this metric usually indicates a trend reversal.
These metrics support an upward trend
Another positive development highlighted in Glassnode Alerts’ post is that BTC’s aSOPR (7d MA) metric reached its lowest level in the past 5 months at 0.99251. This indicated that more investors were selling at a loss. Such situations often indicate that a possible market is at its bottom and increase the likelihood of price increase in the coming days.
Some other metrics of BTC also indicated a bullish outlook. For example, the coin’s exchange reserve was decreasing, indicating that it was not under selling pressure. Miners also seemed to trust BTC, as miners’ position index (MPI) was green, meaning they were selling less than their one-year average.
Like miners, the movements of long-term holders were below average in the past seven days, reflecting their confidence in Bitcoin. Moreover, at the time of writing this article, Bitcoin’s Fear and Greed Index value was 38, indicating that the market was in a “fear” phase, which is usually followed by an increase in the asset’s value.
