Contrasting Predictions Regarding the Upcoming Bull Run in Bitcoin
Two separate crypto analytics companies have given contrasting predictions for the start of the next bull market for Bitcoin (BTC). On the one hand, the likelihood of a bull run is constrained by Bitcoin’s high correlation with the S&P 500. On the other side, Messari has highlighted that a golden cross between Bitcoin’s 50-day and 200-day moving averages has recently occurred, which historically is thought to signal good returns over a six-month to one-year time period.
When Bitcoin’s Moving Averages Align, a Golden Cross Forms
When an asset’s 50-day moving average crosses above its 200-day moving average, a “golden cross” pattern is said to occur. Messari has seen this pattern appear in the moving averages of Bitcoin.
HODLer Net Position Change for Bitcoin Hits Three-Month High
Another crypto analytics company, Glassnode, notes that the HODLer net position change for Bitcoin has risen to a three-month high of 49,473.346 BTC. This suggests that long-term investors have been acquiring BTC during the past month. The average transaction size for Bitcoin over the previous seven days also hit a five-year high on Friday, rising to 986.575 BTC.
Price Development of Bitcoin in 2023
Bitcoin has just dropped in price by 0.53% over the past 24 hours and by about 7% over the previous week, although it has still increased by almost 30% since the year 2023 began. Nevertheless, it has dropped more than 68% from its peak, which was over $69,000 and was achieved in November 2021.
Investment Counseling
As usual, doing extensive research is advised before making any investing decisions.