The oldest and largest cryptocurrency by market value, Bitcoin (BTC), is currently trading at $42,500. Despite touching the $43,800 mark in the last 24 hours, investors anticipating a potential drop in the first two weeks of January have already begun profit-taking, reinforcing resistance levels. However, the anticipated event may have already occurred. Five critical data points are particularly noteworthy.
Various data and events suggest that the bull market for cryptocurrencies began in 2023 and is expected to continue into the following year. While there are numerous indicators and developments, examining five will suffice to confirm this trend.
In the United States, the final stages of approval for Bitcoin ETFs are approaching. The upcoming week could reveal AP agreements, signaling imminent official approvals. The real excitement in crypto is expected to start with the AP Agreements, likely next week. The volume following ETF listings is another critical moment; if weekly volumes fall below $1 billion, it could trigger significant sell-offs.
According to Glassnode, Bitcoin’s Accumulation Trend Score is currently at 1, indicating significant accumulation by large whale entities within the network. This suggests that not only individual investors swept up in the hype believe it’s the right time to buy.
The Bitcoin block reward halving is scheduled for April 2024. Analysts are drawing parallels between current price trends and historical models, pointing to a potential rise similar to those seen in 2013 and 2017. By the third quarter of 2024, BTC could be well on its way to reaching a new all-time high (ATH).
Investor sentiment in the crypto market is back in the greed zone at 73, indicating the start of the expected FOMO period, given that sentiment hovered around 50 throughout the year.
The cumulative value of cryptocurrencies (TOTALCAP) suggests the time for an upswing has arrived. The total market capitalization crossed the 50-week exponential moving average (EMA) on October 23, reaching $1.1 trillion. Buyers are likely setting their sights on the April 2022 range’s highest level of $2.168 trillion. Support above $1.75 trillion will be crucial for the continuation of the rally, potentially resulting in a roughly 33% increase in cumulative value, which could mean 10x gains for many altcoins.