-Multiple technical and on-chain indicators suggest that the bear market of 2022 might be over due to Bitcoin’s price rally since the start of the year.
-Momentum in new addresses has seen the 30-day simple moving average (SMA) recently jump above the 200-day SMA, a shift which often occurs at the start of a Bitcoin bull market.
-However, investors should note that one key on-chain indicator is not sending bullish signs, with Glassnode’s Revenue From Fees Multiple still having a negative 2-year Z-score of around -0.41.
The recent surge in the price of Bitcoin has seen the world’s largest cryptocurrency by market capitalization break back to the north of its 200-Day Moving Average and Realized Price, both of which sit just under $20,000. This has caused some to suggest that the bear market of 2022 might be over, and that a new bull run might be in store for Bitcoin.
Momentum in new addresses has also taken a turn for the better, with the 30-day simple moving average (SMA) recently jumping above the 200-day SMA, a shift which often occurs at the start of a Bitcoin bull market. This suggests that the bullish sentiment for Bitcoin is increasing, and investors could be buying into the digital asset once again.
Furthermore, an analysis from pseudonymous Twitter account @CryptoHornHairs suggests that Bitcoin is tracking almost exactly in line with a long-term market cycle that repeats itself roughly every four years. According to the analysis, Bitcoin is at the beginning of the bullish stage of the cycle, having just come through a 364-day downturn.
However, investors should note that one key on-chain indicator is not sending bullish signs. Glassnode’s Revenue From Fees Multiple still has a negative 2-year Z-score of around -0.41. The Z-score is the number of standard deviations above or below the mean of a data sample. This suggests that it is still too early for investors to bet on a Bitcoin bull run.
Overall, the recent surge in Bitcoin’s price and momentum in new addresses are encouraging signs for investors. However, the key on-chain indicator of Glassnode’s Revenue From Fees Multiple still being negative suggests that it is still too early to bet on a Bitcoin bull run. Investors should keep a close eye on this indicator and other key indicators before investing in Bitcoin.