The oldest and by market value the largest cryptocurrency, BTC, is currently at $42,500 as this article is being prepared. Although it has touched the $43,800 mark in the last 24 hours, investors anticipating potential surprise drops in the first two weeks of January have already started taking profits. This situation, of course, strengthens resistances. However, what was going to happen may have already happened. These 5 data points are extremely important.
The Crypto Bull Season Has Begun
Many data points and events indicate that the bull market has already started in 2023 and will continue into the next year. There are a lot of confirming data points and developments, but it might be sufficient to consider just five of them.
Spot Bitcoin ETF Approval
In the United States, we are nearing the end regarding Bitcoin ETFs. Next week we will likely see AP agreements, which will tell us that official approvals are just hours away. The moment of joy in crypto will likely start next week, during the AP Agreements period, rather than the official ETF approval.
The second major breaking point will be the volume seen after ETF listings. If a weak volume of less than 1 billion dollars per week is observed, it could trigger major sell-offs.
Whales Are Buying Bitcoin
According to the latest data from Glassnode, Bitcoin’s Accumulation Trend Score is currently at 1 (see the chart below), indicating that larger whale entities, which are a significant part of the network, are accumulating. This means that not only individual investors caught up in the hype think it’s the right time.
Bitcoin Halving
There is a Bitcoin block reward halving in April 2024. Analysts are drawing parallels between the current price trajectory and historical models, pointing to a potential rise cycle similar to those seen in 2013 and 2017. Accordingly, by the third quarter of 2024, BTC might have already completed half of its ATH journey.
Greed is Increasing
The appetite of cryptocurrency investors is back in the 73 region. Considering that sentiment hovered around 50 throughout the year, the increase in greed measured by many metrics tells us that the expected FOMO period has begun.
Crypto Chart Says Rise
The cumulative value of cryptocurrencies (TOTALCAP) is now signaling that the time has come. The total market capitalization of cryptocurrencies surpassed the 50-week exponential moving average (EMA) on October 23, reaching 1.1 trillion dollars. Buyers are likely setting their targets at the highest level of the April 2022 range, which is 2.168 trillion dollars.
This could mean that the current rally could produce roughly a 33 percent increase in cumulative value, which for many altcoins could mean 10x gains. Support above 1.75 trillion dollars will be critical for the continuation of the rise.
