Earlier at 5 o’clock, Bitcoin briefly surpassed $58,000, giving a boost to the bullish sentiment. In the following article, analyst cyclop, who has nearly 500,000 followers, outlines ten reasons why he is optimistic about Bitcoin.
(Background:
Viewpoint: Is this bull market the “hardest to make money” in a cycle?
)
(Supplementary background:
Glassnode: Bitcoin is about to experience greater volatility, is the market still in a bull market?
)
Table of Contents
Analyst: Ten reasons to continue being bullish on Bitcoin
1. Stablecoin Index
2. Trading volume
3. YT indicator (YouTube views)
4. BTC.D (Bitcoin dominance)
5. Coinbase download ranking
6. Google Trends
7. Federal Reserve trends
8. Global net liquidity index
9. VC investments
10. Cryptocurrency market cap (excluding top 10)
Earlier today (8), selling pressure on Bitcoin resurfaced, briefly dropping below $55,000, causing losses for bullish investors. However, in the afternoon, Bitcoin seemed to stabilize and started to rise significantly from 4 o’clock, reaching above $58,000 at 5 o’clock. This provided a boost for the bullish sentiment, completely recovering the morning’s decline.
BTC Price Trend | Source: OKX
Currently, the bulls and bears are still fiercely battling it out, and KOL cyclop, with nearly 500,000 followers on the X community, has posted an explanation, stating that the current fear index is similar to the data that triggered the previous upward trend, and lists ten reasons why he believes Bitcoin will continue to rise.
The stablecoin index tracks new capital entering the cryptocurrency market. Currently, it is far from the levels of previous cycles. Once liquidity increases, the market will correspondingly grow.
Despite Bitcoin’s higher price, the current trading volume is much lower compared to 2021. Retail participation is extremely low, so once retail participation increases, the market will rise.
Compared to the previous cycle, the YT indicator has decreased by about five times. In 2021, with Bitcoin valued at $70,000, there were 4 million views per day. Now, with Bitcoin priced at $70,000, there are approximately 800,000 views per day. This indicates that retail investors’ interest is still low, leaving room for growth.
BTC.D is the percentage of Bitcoin’s market cap in the total cryptocurrency market cap. Since April, BTC.D has been consolidating within the range of 54% to 57%. Once BTC.D falls below this range, it will mark the beginning of altcoin season.
When Coinbase, a compliant exchange in the United States, becomes the most downloaded app, historically, it indicates that the market is about to exit. This trend may repeat, but it is far from being realized at the moment. (The following image shows it currently ranked 13th)
Google Trends data on Bitcoin, cryptocurrencies, or altcoins shows that it is still far below the levels of 2021. Looking at the global trends over the past five years, the current search interest is 2.5 times lower than in 2021.
The chart below shows that when the Federal Reserve injects liquidity: buying assets, the trend of assets and liabilities rises, and vice versa. It is crucial to follow this trend as this reversal will increase liquidity in the traditional financial market and then in the cryptocurrency market.
This index monitors the assets held by central banks and the Federal Reserve. Global liquidity is currently in a consolidation phase. However, the chart indicates that changes are about to come.
VC investments reflect market interest. The peak of funding occurred in 2021, aligning with the peak of the cycle. Currently, this number is four times lower.
OTHERS/BTC (cryptocurrency market cap excluding the top 10) is a true representation of the altcoin market sentiment. Currently, this level is even lower than in December 2023, indicating that the main growth is yet to come.
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