Four Charts Indicate Bitcoin’s: The story comes amid broader market jitters, although several charts imply that the Bitcoin bull run might not be over just yet. Despite many failed attempts, Bitcoin reached an all-time high of $73,777 on Binance in the middle of March. Recent events, such as the current Bitcoin price correction and worldwide asset sell-offs have rattled markets. The stock market has lost over $1 trillion, and the S&P and NASDAQ have recorded their worst dumps since 2022.
Why Bitcoin Bull Run Remains Viable
The continued interest from institutions, the growing acceptance by conventional financial services, and positive macroeconomic factors like inflation worries ensure that the Bitcoin bull run will continue. Its sustained price growth could be driven by technological breakthroughs and the increasing acceptability of digital currencies as a store of value.
MVRV Momentum
A market trend’s tenacity, intensity, and trajectory can be tracked using the Market Value to Realized Value (MVRV) Momentum indicator. This orange indicator will continue to show an advance in Bitcoin prices so long as it remains above its blue 365-day moving average. So, once the aforementioned criterion is satisfied, analysts will be able to take advantage of market corrections to purchase BTC, as they are seeking this signal to expand their holdings.
Read More: Growing Institutional Interest in Bitcoin
However, token holders would be sitting on unrealized losses if the MVRV falls below its 365-day average. To prevent additional losses, they can think about getting out of their positions.
BTC ETF Inflows vs. New Issuance Spot ETFs
The demand for spot BTC ETFs is another reason why the Bitcoin Bull Run might still be going strong. Institutional investors became part of the Bitcoin market once the US Securities and Exchange Commission (SEC) decided to legalize the financial instrument.
The subsequent surge in demand keeps driving up Bitcoin’s price. Since the financial instrument began trading on January 11, the flow of spot Bitcoin ETFs has far surpassed issuance, according to a comparison with new supply from miners. According to SoSo Value, a data tracker for crypto and macro-finance, the total net inflow since January 11 is $17.50 billion.
BTC Price Performance Since Halving
The fact that Bitcoin’s price has continued to rise since the fourth halving provides more evidence that the BTC Bull market may continue to thrive. Looking back, the pioneer cryptocurrency saw a horizontal cut following each halving cycle, followed by a substantial increase later in the year. The price of Bitcoin has dropped 2% since the fourth halving (black line) on April 19, 2024. With about nine months remaining for price discovery, BTC may have a significant rise up in store, if past performance is any indication.
Asset Class Performance
Historical Bitcoin performance likewise lends credence to the possibility of a Bull Run. In the eleven years since its inception, Bitcoin has been the best-performing asset eight times. There were three years where it underperformed significantly: 2014, 2018, and 2022.
Prevailing patterns, such as monthly performance, suggest that Bitcoin is unlikely to have a bad year in 2024. For Bitcoin, November is usually the best month, and the quarter after that is usually good as well. The average monthly returns for Bitcoin from 2013 to 2022 were 5.91% in Q1, 32.83% in Q2, 4.21% in Q3, and 93.38% in Q4.
According to Coinglass’s data, Bitcoin’s momentum increases from Q2 to Q4, with Q4 showing the greatest performance at 93.38%. The following table supports the claim that Q2, October, and November show promise.. However, Bitcoin may encounter obstacles despite its potential momentum. Its future is highly dependent on factors like as regulatory changes, macroeconomic developments, technology breakthroughs, and market attitude.
Read More: Btcuntold.com
