Analyst: Bitcoin Has Never Been This Bullish, What’s Next?
February 22 2024 - 5:00PM
NEWSBTC
While Bitcoin treads water around $50,000, with some predicting a
slump, one analyst on X is swimming against the current, claiming
the coin has “never been this bullish.” The coin is bullish despite
cooling off from 2024 highs above $54,000. Analyst: Bitcoin Is
Bullish, Here’s Why The analyst Mags argues that Bitcoin is, at
spot rates, defying historical patterns and showing bullish
signals, especially looking at the candlestick arrangements.
Specifically, Bitcoin recently closed a weekly candle above the
0.618 Fibonacci level before the next halving event. Mags said this
is the first time in the four-year cycle. Related Reading:
Ethereum Breaks Back Above $3,000, Will FOMO Lead To Top Again?
Therefore, though Bitcoin prices have been moving horizontally in
the past few trading days, with fears of price slumps, the
development in the weekly chart is overly bullish. Further
bolstering their optimism, Mags points to the increasing demand for
Bitcoin from institutional investors following the launch of spot
Bitcoin exchange-traded funds (ETFs). Wall Street
heavyweights, including Fidelity, issue some of these products.
BitMEX Research data shows that spot ETFs continue to siphon
more and more coins from circulating supply, sending them to
custodians, like Coinbase Custody, for safekeeping. These coins
will likely be released in the coming years, not months. Besides
institutional interest, optimism for more price gains also stems
from the absence of retail interest at spot rates. Data from
Coinbase shows that unlike the spike in interest that drove Bitcoin
to $70,000, mainly at the back of retailers, BTC prices are up, but
the dynamics are changing. Will Retailers Take BTC To New
Levels? Solid data reveals that retailers are mostly not interested
in the coin at spot rates, looking at the amount retailers have
been spending on the coin. By Q4 2021, retailers acquiring Bitcoin
via Coinbase spent roughly $177 billion. However, this figure
sharply fell throughout 2022 during the bear market, finding
support in H2 2023. Related Reading: Is Ripple Dumping Millions Of
XRP? CTO Addresses Reasons Behind $34 Million Transaction Then,
according to exchange data shared by Will Clemente on X,
retailers began loading the coin from Q3 2023. The figure has risen
to around $39 billion in Q1 2024–less than 25% of Q4 2021 volumes.
How retailers will impact the price of Bitcoin in the future is yet
to be seen. In the past, retail fear of missing out (FOMO) has been
a critical price driver. Presently, CoinStats sentiment tracker,
Fear & Greed indicator, stands at 74, at “greed” territory,
down from “extreme greed” on February 22. This reduction could be
possible because of the fake breakout that lifted Bitcoin above
$53,000. The coin has support at $50,500 but generally remains in a
bullish pattern. Feature image from DALLE, chart from TradingView
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