Bitcoin (BTC) price fell significantly from its annual high of $ 14,149 a few days ago. However, there are five signs that the real rally is just beginning.
Rising HODLing activity, record fundamentals, low retail interest, larger timeframe breakout, and technical indicators suggest that a bigger bull run may be on the horizon.
Breakdown of the upper timeframe
Bitcoin has fallen more than 6% from its local high to over $ 14,000, a level it has not tested since 2017.
However, there was a significant interruption in the weekly and monthly periods. For the first time in nearly three years, the first weekly and monthly candle closed above $ 13,000.
As Cointelegraph reported, the monthly chart shows this Bitcoin is well above moving averages. Technically, this means that the boost is still intact. However, a healthy setback could be beneficial.
Google Trends’ activity and social volume remain low
During the high of a bull run, heGoogle Trends activity for the keyword “Bitcoin” increases as retail demand weakens. When market sentiment becomes euphoric, the whales tend to make a profit, causing the market to decline.
In the past few months, Bitcoin has rallied strongly despite the strong rally There was little activity from Google Trends. This suggests that not many retail investors are looking for the dominant cryptocurrency on Google.
In addition, according to information from The tie, Bitcoin’s monthly tweet volume only rose 7.8% in October. The lack of retail interest despite the multi-year high suggests that BTC may be in an early bull market phase.
Technical indicators show that the rally is not overheating
according to Mayer MultipleBitcoin’s historical price cycles show that the current BTC rally is not overheating.
Mayer Multiple analyzes the price of Bitcoin using its 200-day moving average, which evaluates your long-term price development. If the multiple is above 2.4, it means the rally is likely overheating. For example, in 2017, when BTC hit $ 20,000, that multiple rose to around 3.8.
Currently, from November 2nd, the indicator is hovering around 1.27. This shows that despite BTC’s uptrend from $ 3,600 to $ 13,350, the rally has not been overheated or crowded since March.
The hash rate is still close to a record
In autumn, the northern areas of China experience the rainy season. Large mining centers that rely on hydropower can gain access to cheaper electricity, which allows them to mine Bitcoin more efficiently.
When the rainy season ended There has been a massive exodus of miners in northern China. As a result, Bitcoin’s hash rate dropped sharply in a short period of time.
But still, The average hash rate of 30 days over the past year shows that Bitcoin’s hash rate is still close to its record high. It is currently around 132 million terahashes per second (TH / s). In January 2020, the hash rate was well below 100 million TH / s in comparison.
The HODLing activity remains strong
According to HODL waves it is Assessment of the trend by long-time Bitcoin holdersMore and more investors are holding BTC for longer periods of time.
HODLing activity has increased since March when the price of BTC briefly fell below $ 3,600. Since then, investors have been steadily accumulating BTC.
The growing BTC holding company has solid fundamentals, a cheap technical structure with a high timeframe and positive technical indicators They have boosted general market sentiment, which could ultimately spark an even bigger rally for Bitcoin.