“Will History Repeat?”: In the previous Cycle, Bitcoin jumped from $ 3,150 to $ 14,000!
Leading crypto exchanges hold 1.36 million BTC worth about $ 12 billion 920 million. For the last time large trade firms have such low Bitcoin reserves, the price of the leading cryptocurrency has risen from $ 3,150 to $ 14,000.
Market data shows that an increasing number of traders are removing Bitcoin assets from exchanges. It shows that investors do not intend to sell BTC at the current $ 9,400 price.
Why are Bitcoin investors removing their funds from exchanges?
In the first quarter of last year, Bitcoin’s price ranged from $ 3,150 to $ 4,500 for about four months. As the BTC inflow to the stock markets began to decline, the cryptocurrency began to recover. Within three months, BTC rose 250% from $ 4,000 to $ 14,000.
Bitcoin sees the same BTC entry volume to exchanges seen in early 2019. Fewer traders are investing in Bitcoin on trading platforms that show investors are not interested in the risk of selling their BTC in the range of $ 9,500 to $ 10,000.12-month low BTC entry to the highest cryptocurrency exchanges coincides with long-term indicators that indicate that a new uptrend has begun. Macro indicators like Golden Cross and Puell Multiple show that Bitcoin is on the verge of a big bull run as seen at the beginning of 2019.
Puell Multiple is a metric that takes into account circulating supply by looking at miner’s income to measure if BTC is overbought or oversold. Currently, the Puell Multiple value of BTC is watching at 0.4. In mid-December 2019, Bitcoin was down to $ 0.350, down to 0.3. The supply-oriented metric shows that Bitcoin may experience another small retreat in the short term. However, in the short and medium term, Bitcoin is expected to see a big rally.
Bitcoin recently recorded its seventh golden cross in its history. Three of the last six golden cross had led to a long-term rally.
A golden cross occurs when two long-term exponential moving average (EMA) lines cross each other. Golden Cross usually happens when BTC rebounds quickly from a steep sale.Mohit Sorout, co-founder of Bitazu Capital, states the following:We have recently witnessed the 7th Golden Cross of the existence of bitcoin. 3 of the previous 6 Golden Cross led to huge rallies.
Bitcoin’s ongoing rally is fundamentally and structurally different from previous rallies in the past two years.
This time, there are many retail investors and institutions leading the rise of Bitcoin rather than investors trading with high leverage in the futures market. When a large risk of Long Squeeze is low, long-term macro indicators that are showing a large upward trend in the coming months are considered a positive factor for Bitcoin’s medium-term price trend.