Bitcoin and the market rally in general is just a warm-up for the bigger move ahead, suggests an analysis shared by the official CryptoQuant account. According to the analytics service, the first cryptocurrency is just warming up.
The chart shared on the official Twitter account clearly shows that Bitcoin is just entering a sustained uptrend, similar to the rally starting in 2021. The analysis is mainly based on the increase in trading volume and supply movement on the network.
After moving in a sustained downtrend and bottoming out, we can see an increase in activity in the 1-week to 1-month supply triggering the start of a sideways move.
According to on-chain indicators, the market is repeating itself as the behavior of the first cryptocurrency replicates tendencies we already saw in 2021 and 2017. Bottom supply has started to move and Bitcoin has reversed after a prolonged downtrend.
However, we are unlikely to see an explosive uptrend right away as there is insufficient funding and leveraged positions in the market to trigger an extremely volatile move. But at the same time, a trend reversal now could become the basis for growth next year.
Confirmation of the bottom has yet to appear in the market as Bitcoin could pull back at any time due to bad macro factors including an elevated interest rate and the possibility of another rate hike that would push investors even further out of the market.
At press time, the first cryptocurrency is changing hands at $23,523 while losing 2.7% of its value over the past eight hours.
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