Crypto News

3 Signs Show Bitcoin on Verge of Macro Upsurge, Making $20k Imminent

bitcoin price featured image

After attempting to break decisively past $10,000 for the second time in a week, Bitcoin was rejected, plunging as low as $9,200 earlier Friday morning.
Some fear that this hesitance around the key resistance of $10,000 is indicative of BTC returning to a bear trend.
A growing confluence of technical and fundamental evidence, however, suggests that Bitcoin is on the verge of its next full-blown bull run, which purportedly will give the cryptocurrency a chance to pass its $20,000 all-time high.
Bitcoin Flashes Key On-Chain Signal That Preceded Previous Rallies
According to data shared by on-chain analyst Philip Swift, The Puell Multiple — the USD value of BTC issued per day over the one-year moving average of the same on-chain metric — just reached a key zone.
Chart of The Puell Multiple over time from on-chain analyst Philip Swift’s website,
As can be seen in the chart above, the Multiple recently entered the green band seen at the bottom of the chart — the zone the Multiple reached whenever Bitcoin found macro bottoms over the past eight years.
When BTC crashed to $3,700 this year, the Multiple reached the green band; Bitcoin bottomed at $3,150 when the Multiple fell to the bottom of the green band in late 2018; and preceding Bitcoin’s 2015-2017 rally from the hundreds of dollars to $20,000 was the Puell Multiple bottoming in the green band.
This historical precedent suggests that Bitcoin is nearing a post-halving bottom and is about to embark on a long-term rally.
Charts Flash Strong Technical Signs
According to Alex Fiskum, an associate at boutique investment fund Alice Capital, Bitcoin’s market sentiment and positioning of traders is “showing this was a hated rally.”
That’s to say, most investors were seemingly sidelined throughout this move.
Kelvin “SpartanBlack” Koh — partner at The Spartan Group, a crypto fund, a former Goldman Sachs partner — echoed this sentiment.
Chart from Alex Fiskum, a cryptocurrency trader at Alice Capital based in Hong Kong.
He wrote in a message citing Fiskum’s analysis that he thinks Bitcoin investors are “still somewhat risk off,” with the options market, the relative strength index, and the “fear and greed” index all at points indicating most market participants are still sidelined.
These factors indicate that Bitcoin’s bull trend is far from exhausted, giving the asset room to rally to the upside in the months ahead should buyers step in.
Demand for Bitcoin Is Increasing
Adding to these strong technical and on-chain signs, analysts say that demand for cryptocurrency is increasing and will continue to increase moving forward.
Alex Kruger, an economist closely tracking the crypto space, recently noted that with legendary macro investor Paul Tudor Jones announcing his support for Bitcoin, “incremental demand” for this space is “coming”:
“The Paul Tudor Jones letter is the single most bullish thing ever written about bitcoin, and it came from Tudor himself. I see it as a game changer. Think many macro investors will follow. Mandate changes and onboarding take time,” the analyst elaborated.
Photo by Ales Krivec on Unsplash

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Inline Feedbacks
View all comments

Related Crypto News

$100 Million Liquidated on Defi Protocol Compound Following Oracle Exploit
Lenders on decentralized finance (defi) protocol Compound on Thursday got liquidated for a massive $103 million, according to analytics...
Wallets with less than 1 BTC account for just 5% of Bitcoin’s market cap
With the number of “wholecoiner” Bitcoin wallets holding at least 1 BTC increasing every year, the remaining addresses represent...
TA: Ethereum Steadies Above $500: Why 100 SMA Could Prevent Upsides
Ethereum declined below $500 before the bulls appeared near $480 against the US Dollar. ETH price is correcting higher,...
IOTA teams up with Austrian uni for Internet of Things and blockchain research lab
The IOTA Foundation is teaming up with one of Austria’s most prestigious universities to foster research in distributed ledger...
TA: How A Double Bottom Could Restart Bitcoin Rally Above 17.5k
Bitcoin price declined heavily, but it found support near $16,300 against the US Dollar. BTC is likely forming a...
OECD tax director says international crypto tax standards are coming in 2021
The director of the OECD’s tax center has revealed that the organization expects to release a tax reporting standard...

Featured Crypto News

Global search volume for Bitcoin appears higher than in 2017
Monthly global searches for Bitcoin are reportedly 350% higher than in late 2017. According to data collected by Brad...
Corporate Bitcoin frenzy: companies now hold $15.3 billion in BTC
Companies now hold over 842,000 BTC, which at the current Bitcoin price of $18,200, are worth $15.3 billion. As...
Ethereum Just Surpassed $500 For First Time Since 2018—Key Reasons Why
The price of Ethereum (ETH) hit $500 on Binance for the first time since July 2018. The timing of...
Charted: Litecoin Is Outperforming Major Altcoins, Why Dips Remain Attractive
Litecoin price is up over 10% and it broke the $80.00 resistance against the US Dollar. LTC is consolidating...
Bitcoin price doubles since the halving, with just 3.4M Bitcoin left for buyers
The Bitcoin price has doubled since the halving in May, with Chainalysis attributing much of the bullish price action...
TA: Bitcoin Prints Bullish Pattern, Why Close Above $18.2K Could Be Game Changer
Bitcoin price remained stable above the $17,500 support against the US Dollar. BTC is showing bullish signs and a...