Bitcoin’s Bear Market Fades, Bullish Outlook Takes Hold
According to Glassnode, a crypto analytics firm, on-chain metrics indicate that the bear market for Bitcoin (BTC) may have concluded.
Glassnode employs a signal called “Recovering from a Bitcoin Bear,” which combines eight different metrics to evaluate four primary factors: whether the market is trading above crucial price models if there has been an increase in on-chain activity, whether the market realizes profits and the dominance of long-term holder supply.
The Recovering from a #Bitcoin Bear signal combines 8-metrics, across 4x areas of interest:
✅ Market trading above key price models?
✅ An uptick in on-chain activity?
✅ Is the market realizing in profits?
✅ Do HODLers dominate the supply?📊 https://t.co/cz2mpuwGcg https://t.co/yMjpy23QAg pic.twitter.com/QpDlv4o39m
— glassnode (@glassnode) May 16, 2023
All eight signal metrics presently exhibit a bullish outlook for Bitcoin, suggesting that the leading cryptocurrency by market capitalization might be entering the initial stages of a bull market.
READ MORE: Bitcoin Faces Devastating 50% Plunge, Warns Analyst Benjamin Cowen
Negentropic, a pseudonymous crypto analyst and one of Glassnode’s co-founders, also highlights a momentum shift from meme coins to layer-2 protocols and artificial intelligence (AI) projects.
“This trend likely signifies smart investors capitalizing on profits and acquiring undervalued assets. It is a positive indication for Bitcoin and the overall crypto market. Shorts are going against the prevailing trend.”
The analyst also remarks that Bitcoin is presently displaying an upward trajectory but lacks significant momentum. They assert that increased demand is necessary for the leading cryptocurrency.
Momentum shifting from meme coins to L2s and AI
This is likely by smart money taking profits and buying value at a discount.
Bullish sign for #Bitcoin and crypto. Shorts are swimming against the tide.
Time your entries with our impulse signal frameworkhttps://t.co/hwSjl6RTiO pic.twitter.com/X7eoCOGGpg— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) May 15, 2023
At the time of writing, Bitcoin is priced at $26,891, with no significant price movements in the past 24 hours. Nevertheless, Bitcoin’s value has surged by approximately 63% since the beginning of 2023.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
