Bitcoin Bull Run? CryptoQuant Predicts 2020 Bear Cycle May be Over
• CryptoQuant joins Glassnode in predicting that Bitcoin’s year-long bear cycle could be over.
• Bitcoin’s price has surged by over $5,000 since the start of the year and reclaimed $20,000.
• CryptoQuant has outlined the movements between different types of trading venues as the first positive sign for BTC.
As Bitcoin’s price surges to reclaim the $20,000 mark, the number of analysts predicting that the asset is out of the woods continues to increase. CryptoQuant is the latest analytics company to offer some insight into the key on-chain signals that could suggest the start of a bull run.
The year 2020 has been a tumultuous one for the world’s leading cryptocurrency. After a promising start, the asset’s price plummeted to a new 2020 low in the midst of the global pandemic. BTC was trading around $10,000 for most of the year, with investors losing hope that the asset would be able to reclaim its previous highs.
However, optimism has slowly returned in the last few months of 2020, as Bitcoin’s price has slowly recovered and has now surged by over $5,000 since the start of the year. This has led to many analysts, including those from CryptoQuant, to suggest that the asset’s year-long bear cycle could be done.
CryptoQuant has outlined the movements between different types of trading venues as the first positive sign for BTC. To be specific, the analysts suggested that the transfers of large amounts of Bitcoin from major exchanges, to others such as OTC desks, wallets, and other platforms, could be seen as a sign of institutional investors’ confidence in the asset and its long-term potential. This, in turn, could be seen as a sign that the asset is starting to enter a bull market.
Furthermore, CryptoQuant also noted that the number of Bitcoin held on centralized exchanges has dropped to a multi-year low. This could be a sign that investors are starting to move their funds away from these exchanges and into more secure wallets, which could indicate an increase in demand for the asset.
The data provided by CryptoQuant also indicated that the number of wallet addresses that own over 1,000 BTC has hit a new all-time high. This suggests that large investors are continuing to accumulate Bitcoin, which could be seen as another sign of increased demand for the asset.
Finally, CryptoQuant also highlighted an increase in the number of Bitcoin transfers. This could be a sign that the asset is beginning to gain traction with retail investors, who are starting to invest in the asset in larger numbers.
Overall, the data provided by CryptoQuant indicates that the asset’s year-long bear cycle could, in fact, be over. With the asset’s price surging and several key metrics showing positive signs, it seems that the asset could be on the cusp of entering a new bull market.