Despite a short rebound in both stock and cryptocurrency markets, most analysts have predicted the worst has yet to happen. However, according to new data, Bitcoin's development signal has reversed, signaling a bull run will soon occur?
Bull run Bitcoin came despite the guess discount?
According to the data created by lookintobitcoin.com - Philip Swift released on March 30, we finally see our luck. Bitcoin's bullish momentum could be the start of a new bull run.
Because the daily volume of BTC on-chain is increasing and this is a phenomenon usually seen before all the previous bull market.
Bitcoin Network Momentum:
1 / Are we finally starting to see the surge in on-chain daily BTC volume that precedes a new bull run?
Volume has certainly been picking up the last few days as price capitulated and ranged. pic.twitter.com/he5YpokLlk
- Philip Swift (@PositiveCrypto) March 30, 2020
"Motivation of the Bitcoin network:
first/ Will increasing daily BTC volume on-chain lead to a new bull run? Grade level Quality sure increase in the last few days when the price reduction and limited".
Why is trading volume important?
Trading volume is an important technical indicator that analysts and traders look at to confirm a trend. Because it represents the overall activity of the asset or market, an increase in volume indicates that more people are making more trades.
Like Swift explain:
“Motivation mThe Bitcoin network depends on the relationship between prices BTC and value Daily transaction flow via blockchain”.
Looking at the chart below from 2018, you can see the relationship between price and volume. Before and after the bear market the volume dropped and there the bull market started with the increased trading volume.
Estimated transaction value
BTC trading volume helps investors determine market dynamics. Instead of price fluctuations caused by a group of small whales that can eventually become false breakouts, it can confirm the general trend is up.
When trading volume increases, prices often follow and vice versa. So can this new data from lookintobitcoin.com signal an imminent bull run?
Follow trading volume on reliable exchanges
"Although have more money okay holding off-chain compared to the previous cycle but I still expect some move significant increase in volume on-chain daily because Smart money OK cumulative before there is bull run new”.
However, during this period of time, trading volume figures may not be as reliable as they used to be:
4 / Will be interesting to see how valid this metric still is, if at all since the market has evolved. It may not be.
Also worth keeping an eye on credible exchange volumes alongside this.
Live chart here: https://t.co/DIQK0ppiJv
- Philip Swift (@PositiveCrypto) March 30, 2020
"It will be interesting because this figure is still valid since the market developed.
It's well worth watching on trusted exchanges. ”.
Certainly, the last Bitcoin bull run did not begin in the context of the current economic downturn or global pandemic. Cryptocurrency markets may not be able to escape the general tragedy.
However, it's worth keeping in mind the trading volume as it can still be helpful in determining whether a new bull run is imminent or not?
Bitcoin will rise in price in Q2 /2020?
Most investors don't put much faith in ATH this year. FDIC issued the document below to beg not to start massively withdrawing money from the bank, but almost did not make people feel more secure.
Forget the mattress! Keeping large sums of cash at home is risky. The best place to protect your money is in an FDIC-insured bank where whilst safe and sound. Learn how the FDIC safeguards your #money at https://t.co/O2cb1bTUJs pic.twitter.com/R8pFVxBPrM
- FDIC Gov (@FDICgov) March 24, 2020
"Forget it! Keeping a large amount of cash at home is risky. The best place to protect your money is bank insured by FDIC. Learn how FDIC protects money of you at... ”
And while both stock markets and cryptocurrencies are enjoying a short rally, many are anticipating a sharp correction in both assets. Death cross is imminent for stocks and Bitcoin collapses to only $ 3,800 in the coming weeks. When tracking predictions like this, it's hard to imagine the possibility of price increases in the second quarter. Moreover, the false data indicate that Bitcoin in the first quarter fell by 10%:
Q1 2020 looking down 10% for Bitcoin pic.twitter.com/oP70DNUiXZ
- skew (@skewdotcom) March 31, 2020
"Bitcoin dropped 10% in the second half020 ”
But looking back at data from 2014 may bring some hope for Bitcoin in the next 3 months. After all, 5 of the 7 years until 2020 didn't start well for Bitcoin. Even 2015 ended the year at an increase of 82.4%, began to decline by 23.73% at the end of the first first quarter.
Still halving so what?
Of course, the important event that people think will shape Bitcoin price in Q2 is halving in May. Bitcoin supporters everywhere have long pointed out that this is a very bullish event.
Perhaps we'll find some clues by looking at 2016, the last time Bitcoin halving happened. The actual time is July 9, 2016, in the third quarter. And the immediate effect is Bitcoin's price decline.
In 2016, BTC announced YTD profit of 61.58% at the end of Q2. By the end of Q3 after halving, it was down 9.45%.
Judging by global events and a drop in prices almost certainly right after halving, it looks like Bitcoin won't increase in Q2. But looking at the huge increase that BTC had in the 5 quarters after the last halving, Long-term prospects still seem to increase.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZCoin News
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