Since the $3,700 bottom seen in the middle of March, Bitcoin has rocketed higher, rallying as high as $7,470 in an impressive fashion. While impressive, the cryptocurrency is not yet in a full-blown bull run, with there existing a confluence of resistance overhead the BTC price, analysts are gaining confidence a bull run is near.
Glassnode, a leading cryptocurrency data firm, suggested that per one of its proprietary indicators that accurately timed Bitcoin’s market tops, a full-blown “bullish trend reversal” may soon be confirmed.
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Glassnode: Bitcoin Could Soon Confirm Trend Reversal
While the crypto market often moves without rhyme or reason, its trends can be tracked and traced by looking at on-chain data.
According to Glassnode, one of its on-chain indicators, the Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL), is indicating that BTC remains in a bear trend, with short-term holders found to be in “capitulation.”
The firm indicated that once the indicator enters into a stage of “hope,” which means that short-term Bitcoin investors will be in profit, it will likely be confirmed that BTC has seen a “bullish trend reversal” and will enter back into a cycle of growth as opposed to weakness.
Short-Term Holder NUPL has been extremely accurate in timing #Bitcoin market tops (green zone).
Also, consistently staying above the red zone has indicated $BTC bull markets.
The current upwards trend needs to be confirmed for a bullish trend reversal.https://t.co/SWEJf7FZDF pic.twitter.com/nFN0ZDVzjG
— glassnode (@glassnode) April 15, 2020
Bull Run Is Near
Although Glassnode’s indicators do not suggest a bull market has started, prominent analysts are certain that this phase of the market cycle is very near.
Speaking to Bloomberg TV this Monday, Mike Novogratz — CEO of Galaxy Digital and a former Goldman Sachs partner — remarked that he remains long on gold and Bitcoin, citing two fundamental trends:
Stimulus by central banks and governments: Governments and central banks around the world have kicked into overdrive over the past few weeks to combat the economic effects of the coronavirus outbreak. They have been printing money en-masse, airdropping money to citizens, bailing out businesses, and much more. Novogratz claims that this makes Bitcoin and gold look better, citing their scarce nature.
Institutional adoption: Another thing that Novogratz signaled is that he’s bullish on Bitcoin because he’s seen it is in the midst of seeing strong adoption from institutional players, specifically pointing towards high-net-worth individuals and hedge funds entering the industry.
While he didn’t mention his prediction in this latest interview with Bloomberg, Novogratz last week told CNBC that he remains certain Bitcoin will pass $12,000 in October, then eclipse its previous all-time high of $20,000 by the end of the year.
The former Wall Street investor put so much faith in this forecast that he said:
“This is the year of Bitcoin and if it doesn’t go up now by the end of the year, I might just hang my spurs.”
What Novogratz is saying is that he thinks if the bull run hasn’t started already, it’s near.
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Photo by Simon Rae on Unsplash