Key Indicator Predicts Potential Bull Run for Bitcoin
There is a crucial on-chain metric that could indicate the start of a significant upward trend for Bitcoin. While Bitcoin prices are currently stable and gradually increasing, they have not experienced the sharp upward movements that many traders expected following the Halving event in April 2020.
Flow Indicator Decline Signals Bull Run?
- Analyst notes sharp decrease in 7-day average Flow indicator at major exchanges like Coinbase and Binance.
- Flow indicator dropped from 161,000 to 76,000 BTC, marking nearly a 50% reduction in the metric.
- Similar pattern observed in 2017 before Bitcoin’s historic bull run.
Historical Trends and Potential Price Movement
- In 2017, Flow indicator dropped to 64,500 BTC before prices surged to around $20,000 in December.
- Halving event reduces daily emissions by half, potentially leading to supply squeeze and price increase.
- Price rally typically occurs a few months after Halving Day, but recent deviations have been observed.
Regulatory Developments Impacting Bitcoin Prices
In January 2024, the SEC approved the first spot Bitcoin ETFs, allowing institutions to gain exposure to Bitcoin through shares. These regulatory shifts may influence price action and introduce new deviations from historical performance trends.
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