It’s almost a full-fledged bear market right now. But the market is showing four signs of a bullish reversal. What are they?
The price of Bitcoin is more than 70% lower than its all-time highs. Bitcoin has been in a downward trend since November 2021. The price seems to be between 18,000 and 20,000 in recent weeks.
However, there are some signs of a bullish reversal in Bitcoin.
The significant increase in institutional investment
The price of each asset mainly depends on investments with big money. It seems that institutions are buying the dip. Institutional and venture capitalist money is pouring into the crypto markets.
The interest of institutions is mainly due to their clients demanding exposure to Bitcoin and cryptocurrency in their investment portfolios. Furthermore, many more institutions are waiting for some clarity on crypto regulation by US lawmakers. The surge in institutional investment will result in a bullish turnaround for entire crypto markets.
Whales seem to collect BTC
The stagnant price action is not stopping whales from accumulating BTC. According to data from CryptoQuant, Binance’s spot trading volume dominance skyrocketed to 84%. The increase in spot trading volume may indicate that the buyers are interested in keeping the supply of BTC and not just trading the futures.
In addition, there were more than 48,000 BTC retired from exchanges this week. This is an important sign that some whales have bought the BTC locally and kept it in their wallets.
In addition, BTC spot trading volume for all exchanges has increased 20x in the past six months. This indicates that whales are gradually accumulating BTC, and sooner or later there will be a bullish turn in crypto markets.
Bitcoin Hashrate At A Record High Points To A Bullish Reversal For Crypto Markets
According to data from Glassnode, the Bitcoin hashrate is at an all-time high. The increase in Bitcoin’s hash rate indicates more competition among the miners, and thus miners are optimistic about BTC. It makes miners delay Bitcoin instead of selling them.
Long-term HODLERS don’t sell BTC
Despite the market volatility, long-term holders still have faith in BTC. According to data from glass node, long-term holders have more than 13.62 million Bitcoins. Bitcoins have been inactive for over 155 days and are less likely to spend during market volatility.
These four signs indicate that the crypto market is near the bottom and may see a bullish reversal soon.
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