Earlier at 5 o’clock, Bitcoin once broke through $58,000, giving a boost to bullish sentiment. In the following article, analyst cyclop, who has nearly 500,000 followers, outlines ten reasons for being optimistic about Bitcoin.
(Background:
Glassnode: Bitcoin set for greater volatility, is the market still in a bull run?)
Table of Contents
Analyst: Ten reasons to remain bullish on Bitcoin
1. Stablecoin Index
2. Trading Volume
3. YT Indicator (YouTube Views)
4. BTC.D (Bitcoin Market Cap Dominance)
5. Coinbase Download Ranking
6. Google Trends
7. Federal Reserve Trends
8. Global Net Liquidity Index
9. VC Investment
10. Cryptocurrency Market Cap (excluding the top 10)
Today, in the early morning, selling pressure on Bitcoin resurfaced, causing it to drop below $55,000 and washing out bullish investors. However, in the afternoon, Bitcoin seemed to stabilize and started to surge from 4 o’clock, briefly breaking through $58,000 at 5 o’clock. This served as a shot in the arm for the bullish sentiment, completely recovering the morning’s decline.
Currently, the bulls and bears are still fiercely battling it out, and KOL cyclop, a community influencer with nearly 500,000 followers, posted an explanation, stating that the current panic index is similar to the data that initiated the previous upward trend. He also listed ten reasons why he remains optimistic about Bitcoin’s continuous rise.
The Stablecoin Index tracks new capital entering the cryptocurrency market, which is currently far from previous cycle levels. Once liquidity increases, the market will correspondingly grow.
Although the price of Bitcoin is higher, the trading volume is much lower compared to 2021. Retail participation is extremely low, so once retail participation increases, the market will rise.
The YT Indicator has decreased by about 5 times compared to the previous cycle. In 2021, when Bitcoin was worth $70,000, it had a daily view count of 4 million. Now, with Bitcoin priced at $70,000, the daily view count is about 800,000. This indicates that the interest from retail investors is still low, leaving room for further growth.
BTC.D is the percentage of Bitcoin’s market cap dominance over the total cryptocurrency market cap. Since April, BTC.D has been fluctuating within the range of 54% to 57%. Once BTC.D falls below this range, it will mark the beginning of the altcoin season.
When Coinbase (a compliant exchange in the United States) becomes the most downloaded application, historically, it indicates that the market is about to peak. This trend may repeat, but it has not yet been realized. (The image below shows it currently ranks 13th)
Google Trends data on Bitcoin, cryptocurrencies, or altcoins currently remains much lower than the levels in 2021. Looking at the global trends over the past 5 years, the current search interest is 2.5 times lower than in 2021.
The graph below shows that when the Federal Reserve injects liquidity, asset purchases increase, and vice versa. It is crucial to follow this trend as this reversal will increase liquidity in the traditional financial market and then in the cryptocurrency market.
The Global Net Liquidity Index monitors the assets held by central banks and the Federal Reserve. Global liquidity is currently in a consolidation phase, but the chart indicates that changes are forthcoming.
VC investment reflects market interest. The peak of funding occurred in 2021, aligning with the peak of the cycle. Currently, this number is four times lower.
OTHERS/BTC (Cryptocurrency market cap excluding the top 10) represents the true state of the altcoin market. Currently, this level is even lower than in December 2023, indicating that significant growth is still ahead.
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