-0.8 C
New York
Wednesday, February 21, 2024

Buy now

Here’s Why The Bitcoin Bull Run Isn’t Done Yet

CNBC’s Brian Kelly builds the Bitcoin bull case by referencing a divergent metric that, in the past, foreran the calm before a price storm.
Uncertainty reigns, and market sentiment is extremely fearful. As such, the narrative of a return to crypto winter is strong. However, Kelly’s analysis leads him to believe it’s time to buckle up for a breakout.

Bitcoin Bull Run Still On Track
From peak to trough, a 54% drop from its $65k all-time high was sufficient to spook the market. Short-term investors exited their positions, at a loss, for fear of further downside.
Bitcoin’s flat performance hasn’t helped the matter since its price bottomed at $29k. For the last two weeks or so, BTC has been range-bound on the daily close between $35k and $41k.

Source: BTCUSD on TradingView.com
Although the start of this week resulted in consecutive daily gains, a rejection near $38k on Tuesday has added to the narrative that the bear market is back.
However, CNBC’s Brian Kelly builds the bull case by referring to the rate of Bitcoin address growth compared to expected address growth. He noted that actual address growth is holding flat, whereas expected address growth has nosedived.

Source: CNBC Television on YouTube.com
“For me, when you look at Bitcoin it’s all about network effect and really about address growth. So, one of the key metrics I look at when I’m managing crypto money is how fast addresses are growing versus what the market is expecting.”
Kelly points out the last time a similar divergence in addresses happened was March 2020, during the “Corona-Crash.” The resultant price action saw a +1,750% move over 13 months, peaking at $65k.
“Generally, when Bitcoin gets that mispriced is a sign of that bottoming process. So, we look back at March 2020 when we had a massive divergence, that’s when Bitcoin was thirty five hundred and it roared to sixty five thousand.”
In supporting this view, Kelly mentioned that the fundamentals remain the same in that institutions are still around. The hedge narrative remains, and regulatory authorities continue to express a desire to work with crypto instead of banning it.
Is The Bull Run Still Intact?
Hitting an all-time high, then experiencing a rapid decline of 54%, is signal enough to indicate the end of the Bitcoin bull run for many.
Automation Engineer, Alexandros Roumpos, points out that crypto bull periods usually run for 460-518 days. This current phase is only 370 days in, but he remains cautious in declaring with certainty that the bull run is intact.
“It looks like the market is split in the middle. One part believes that we are in a bearish phase and that this cycle is over because of the big correction. The other half believes that we haven’t seen the big gains in this bull run and that we are in a healthy correction.”
Nonetheless, some analysts have spoken about bigger price swings and long bull runs due to the effect of institutional money this time around.
However, as Roumpos makes clear, no one can predict the future.

Madeline Flatley
Madeline Flatley
I’m a regular contributor to major crypto publications such as CoinDesk, Bitcoin Magazine, and Crypto Insider. My work has helped thousands of people get started in the world of cryptocurrencies. If you're looking for someone who can provide insights into the world of cryptocurrencies, then you've come to the right place!

Latest Articles

bitcoin
Bitcoin (BTC) $ 52,091.96
ethereum
Ethereum (ETH) $ 3,007.79
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 354.86
solana
Solana (SOL) $ 106.76
xrp
XRP (XRP) $ 0.556162
staked-ether
Lido Staked Ether (STETH) $ 3,000.99
usd-coin
USDC (USDC) $ 1.00
cardano
Cardano (ADA) $ 0.608003
avalanche-2
Avalanche (AVAX) $ 38.01
tron
TRON (TRX) $ 0.140451
dogecoin
Dogecoin (DOGE) $ 0.085417
chainlink
Chainlink (LINK) $ 18.99
polkadot
Polkadot (DOT) $ 7.60
matic-network
Polygon (MATIC) $ 1.00
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 52,037.94
the-open-network
Toncoin (TON) $ 2.17
internet-computer
Internet Computer (ICP) $ 13.51
shiba-inu
Shiba Inu (SHIB) $ 0.000010
uniswap
Uniswap (UNI) $ 7.45
bitcoin-cash
Bitcoin Cash (BCH) $ 263.64
litecoin
Litecoin (LTC) $ 69.08
dai
Dai (DAI) $ 1.00
immutable-x
Immutable (IMX) $ 3.37
blockstack
Stacks (STX) $ 2.86
leo-token
LEO Token (LEO) $ 4.35
kaspa
Kaspa (KAS) $ 0.178082
cosmos
Cosmos Hub (ATOM) $ 10.17
ethereum-classic
Ethereum Classic (ETC) $ 26.94
bittensor
Bittensor (TAO) $ 609.02
filecoin
Filecoin (FIL) $ 7.41
optimism
Optimism (OP) $ 3.85
hedera-hashgraph
Hedera (HBAR) $ 0.108774
aptos
Aptos (APT) $ 9.43
near
NEAR Protocol (NEAR) $ 3.31
stellar
Stellar (XLM) $ 0.116562
injective-protocol
Injective (INJ) $ 36.03
vechain
VeChain (VET) $ 0.043309
okb
OKB (OKB) $ 51.28
lido-dao
Lido DAO (LDO) $ 3.29
celestia
Celestia (TIA) $ 17.51
first-digital-usd
First Digital USD (FDUSD) $ 0.998404
arbitrum
Arbitrum (ARB) $ 1.94
mantle
Mantle (MNT) $ 0.760118
crypto-com-chain
Cronos (CRO) $ 0.091471
render-token
Render (RNDR) $ 6.38
sei-network
Sei (SEI) $ 0.901613
the-graph
The Graph (GRT) $ 0.243001
monero
Monero (XMR) $ 123.50
sui
Sui (SUI) $ 1.68