Key Takeaways:
- Bitcoin block reward is increasing, suggesting a coming bullish run.
- It's time to start stacking bitcoin again, say analysts.
LAGOS (CoinChapter.com) — The ongoing cryptocurrency bear market might be coming to an end as the percentage of the fees in the block rewards is steadily increasing, suggesting that a bullish surge should be expected soon.
In detail, data from the blockchain analytics platform, CryptoQuant, has indicated a surge in Bitcoin block reward accumulation, pointing to a possible end to the current downtrend of digital assets.
Block reward refers to the incentive crypto miners receive for successfully mining a block of crypto assets. For example, bitcoins are awarded to miners for being the first to solve a complex math problem, creating a new block of verified bitcoin transactions.
During a bull market, a surge in block reward indicates higher values and a healthy market. However, during a bearish market, the indicator drops almost close to zero, indicating capitulation.
Furthermore, the metric registers a rise at the end of the bearish cycles, indicating that consumers are accumulating the asset. Usually, the accumulation leads to a surge which invariably triggers the next bull run.
The Bitcoin block reward plummeted to zero after the value of the top digital asset crashed. However, CryptoQuant data indicates that consumers are currently accumulating the asset and a bull run is around the corner.
Bitcoin In ‘Accumulation’ Phase ―Analysts
Similarly, crypto analysts have advised consumers to start stacking Bitcoin again. Corroborating earlier stated data, several analysts have posited that Bitcoin is in the ‘accumulation’ phase and bound to surge.
Analysts at Blockware Intelligence disclosed that tokens added to the network by miners, who receive them as a block reward, have dropped significantly. They said many miners had reduced their crypto holdings to stay afloat as the value of block reward has fallen.
“Entering the green zone is a good time to average in, and for those more conservative. You can also wait for confirmation with a move out of the accumulation zone.”
Blockware Intelligence analysts said.
CryptoQuant analyst Julio Moreno also explained that the steady rise would result in a bullish surge. He argued that this is a perfect opportunity to build long-term exposure in crypto.
“If all newly issued bitcoin were immediately sold on the market each day. It would equate to only 900 BTC of selling pressure, which represents just 1%-1.5% of total daily volume.”
Coinbase said.
Bitcoin Surges 4%
Additionally, the Bitcoin price surged on the day and is currently consolidating near the $21,500 level. The BTC/USD pair is currently trading at $21,454, increasing by about $4%, according to data from TradingView.
The market bias is neutral to bullish, and prices are expected to rise above the $22,000 support level in the short term. The market is expected to bounce back as the bulls attempt to recapture the higher levels.
Bitcoin market cap has also risen to $415 billion with a 24-hour trading volume of $43 billion. The asset also has a circulating supply of 19 million BTC coins and a total supply of 21 million.
