4 Signs Pointing to a Bullish Reversal in Crypto Markets
It’s almost a full-blown bear market right now. But the market is indicating four signs of a bullish reversal. What are they?
The price of Bitcoin is more than 70% down from all-time highs. Bitcoin has been in a downtrend since November 2021. The price seems to be settled in the range between 18,000 and 20,000 from the last couple of weeks.
However, there are some signs of a bullish reversal in Bitcoin.
The significant increase in institutional investment
The price of an asset depends primarily on big money investments. It seems that institutions are buying the dip. Institutional and venture capitalist money is pouring 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 waiting for some clarity on crypto regulation from US lawmakers. The increase in institutional investment will result in a bullish reversal for entire crypto markets.
Whales seem to hoard BTC
The stagnant price action isn’t stopping whales from hoarding 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 supply of BTC and not just in trading futures.
On top of that was more than 48,000 BTC subtracted from exchange this week. This is a big sign that some whales bought BTC on the spot and took custody of the wallet.
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 the 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 therefore miners are bullish on BTC. That’s what miners do hold Bitcoin instead of selling them.
Society believes these factors will result in a bullish reversal for crypto markets. Furthermore, Bitcoin is the hash band flashing a buy signal.
Long term HODLERS do not sell BTC
Despite the market volatility, long-term owners 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 used during market volatility.
These four signs indicate that the crypto market is near the bottom and could soon see a bullish reversal.
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