Bitcoin Retraces 5% from 19-Month High
Bitcoin (BTC) experienced a 5% retracement in the second week of December, dropping from its 19-month high of $44,700 on Dec. 9 to $42,236 on Dec. 16. This decline followed a significant rally of 62% over two months.
JP Morgan Warns BTC is Overbought
J.P. Morgan, a major U.S. bank, warned in mid-November that Bitcoin was overbought after surpassing the $36,000 level. However, blockchain analytics firm CryptoQuant believes that while BTC corrected after a rapid climb, it is still in a bull market.
8 Signs That Bitcoin’s Bull Market Continues
1. Bitcoin Mining Takes an Hour or More to Mine a Block
The increasing number of miners participating in the Bitcoin network has led to longer block mining times. The network difficulty has reached an all-time high, causing blocks to take more than an hour to be produced.
2. BlackRock Wants a Bitcoin ETF
The world’s largest asset manager, BlackRock, is seeking approval for a regulated Bitcoin ETF product. This shows the changing perception of cryptocurrencies by institutional investors.
3. Majority of Bitcoin Hasn’t Moved in a Year or Longer
About 70% of the total Bitcoin supply has not been moved for at least a year, indicating strong conviction from long-term holders.
4. CME Group Leads in Bitcoin Futures Volume
CME Group, a regulated derivatives marketplace, has surpassed Binance in terms of open interest in Bitcoin futures contracts. This demonstrates continued institutional interest in Bitcoin.
5. Rare Bullish Signal from Bitcoin Futures
CME markets for Bitcoin futures recently showed a rare bullish signal known as contango. This indicates a positive sentiment among investors.
6. Whale-Sized Bitcoin Buys
The blockchain data reveals large purchases of Bitcoin by whale entities, indicating confidence in the cryptocurrency’s future growth.
7. Bitcoin Price Charts Follow Parabolic Pattern
Bitcoin’s price chart is following a pattern of parabolic price run-ups that have occurred in previous cycles, suggesting a potential bullish breakout.
8. Analysts Make Bullish Price Predictions
Several analysts have made optimistic predictions for Bitcoin’s price, with some forecasting prices as high as $700,000 by 2024 or 2025.
Hot Take: Bitcoin’s Bull Market Continues to Show Strength
Despite a recent retracement, there are several indicators that suggest Bitcoin’s bull market is far from over. From the increasing difficulty of mining to institutional interest and positive price patterns, the future looks promising for the leading cryptocurrency. Additionally, long-term holders and whale buyers further support the belief in Bitcoin’s continued growth. Analysts are also making bullish predictions, adding to the positive sentiment surrounding BTC. While market movements are unpredictable, these signs indicate that the bull market may still have room to run.
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