Bitcoin’s recent surge in new investors, marking a 10.62% increase in the last week alone, has set the stage for a bullish rally in the cryptocurrency market. As highlighted by CryptoQuant, an analytic platform, this influx of short-term investors indicates a pivotal moment where significant price movements are anticipated.
The current landscape mirrors the conditions observed in October ‘20, signaling the inception of the previous bull cycle or in October-November ’21, during the cycle’s peak. Moreover, Bitcoin price peaks in 30 countries further underscore the growing interest among new investors, likely to propel market expansion.
As the proportion of short-term investors escalates, the market finds itself at a crossroads poised for notable fluctuations. Drawing parallels to historical patterns, the resemblance to the beginning of a bullish rally akin to that of October ’20 is striking. The influx of fresh capital and the subsequent uptick in prices indicate an overheating market, a trend likely to persist in both futures and on-chain data analyses.
Although the possibility of a 20-30% correction looms due to overheating, the overarching sentiment remains bullish. Temporary downturns should be perceived as opportunities rather than deterrents, as the correction is forecasted to pave the way for Bitcoin’s ascent towards the $120K mark. Presently, Bitcoin’s price stands at $65,326.37, boasting a 24-hour trading volume of $43.6 billion, with a 4.76% increase in the past 24 hours.
Analyzing the technical indicators, Bitcoin’s 1-Day RSI registers at 83.78, signaling potential overbought conditions in the short term. Conversely, the 1-Day MACD trades above the signal line, indicating forthcoming bullish momentum. The 4-hour KST corroborates this stance, depicting a strong positive trend in the short term. However, investors are advised to exercise caution, considering the elevated RSI and MACD values that may foreshadow an imminent correction.
