It is almost a full blown bear market right now. But the market is showing four signs of a bullish reversal. What are they?
Bitcoin price is down more than 70% from its all-time high. Bitcoin has been in a downtrend since November 2021. The price seems to have been fixed between 18,000 and 20,000 for the past few weeks.
However, there are some signs of a bullish reversal in Bitcoin.
Significant increase in institutional investment
The value of any asset mainly depends on the investment of big money. It looks like institutions are buying dips. Institutional and venture capitalist money is pouring into the crypto markets.
The institutions’ interest is primarily due to their clients seeking exposure to bitcoin and cryptocurrencies in their investment portfolios. In addition, many more institutions are waiting for some clarity on crypto regulation by US lawmakers. The increase in institutional investment will lead to a rapid reversal of the entire crypto markets.
Whales seem to be depositing BTC
Steady price action is not stopping whales from hoarding BTC. Binance Spot trading volume dominance increased to 84%, according to data from Cryptoquant. An increase in spot trading volume could indicate that buyers are interested in delivery of BTC, not just futures trading.
On top of that, there were over 48,000 BTC. withdrawn from Exchange this week. This is a major indication that some whales bought BTC on the spot and took custody of them in their wallets.
Furthermore, BTC spot trading volume across all exchanges has increased 20x over the past six months. This indicates that whales are slowly accumulating BTC, and sooner or later, there will be a sharp reversal in the crypto markets.
Bitcoin hashrate at all-time high indicates a bullish reversal for crypto markets
According to data from Glassnode, the hash rate of bitcoin is at an all-time high. An increase in the bitcoin hash rate indicates more competition among miners, and therefore miners are bullish on BTC. This causes the miners grasp bitcoins instead of selling them.
The community believes that these factors will result in fast The reverse for the crypto markets. Furthermore, there is the bitcoin hash ribbon. shining a buy signal.
LONG TERM HODLERS NOT SELLING BTC
Long-term holders still have confidence in BTC, despite the volatility in the market. according to the data of glassnodeLong-term holders hold over 13.62 million bitcoins. Bitcoins have been dormant for more than 155 days and are less likely to be spent during market volatility.
These four signals indicate that the crypto market is near the bottom and may soon see a bullish reversal.
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