Analyst Claims Bitcoin Is More Bullish Than Ever
An analyst named Mags believes that Bitcoin is exhibiting bullish signals despite recent price stagnation. According to Mags, the coin’s candlestick arrangements and its ability to close a weekly candle above the 0.618 Fibonacci level before the next halving event indicate a break from historical patterns. This suggests that Bitcoin is currently more bullish than ever before in its four-year cycle.
Mags also highlights the growing demand for Bitcoin from institutional investors following the introduction of spot Bitcoin exchange-traded funds (ETFs). Wall Street giants like Fidelity have released these products, and data from BitMEX Research shows that more coins are being taken out of circulation and stored in custodial services like Coinbase Custody.
Furthermore, Mags notes that there is currently less retail interest in Bitcoin at spot rates compared to previous spikes in interest. This shift in dynamics, along with the absence of retailers driving up prices, contributes to the overall optimism for further price gains.
The Impact of Retailers on Bitcoin’s Future Price
Data reveals that retailers have been less inclined to acquire Bitcoin at spot rates recently. In Q4 2021, retailers spent around $177 billion on acquiring Bitcoin via Coinbase. However, this figure significantly dropped during the bear market in 2022 before rebounding in H2 2023.
In Q1 2024, retailers have spent approximately $39 billion on Bitcoin, which is less than 25% of the volumes seen in Q4 2021. The extent to which retailers will influence Bitcoin’s future price remains uncertain. Historically, retail fear of missing out (FOMO) has played a significant role as a price driver.
Currently, the CoinStats sentiment tracker, Fear & Greed indicator, stands at 74, indicating “greed” territory. However, this is a decrease from the previous “extreme greed” level seen on February 22.
Hot Take: Bitcoin’s Bullish Trend Continues
Despite a temporary fake breakout above $53,000, Bitcoin remains in a bullish pattern with support at $50,500. While some predict a potential slump in the coin’s price, Mags and other analysts maintain that Bitcoin is currently more bullish than ever before. The combination of bullish candlestick arrangements, institutional demand driven by spot ETFs, and changing retail dynamics all contribute to the positive outlook for Bitcoin’s future price.
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