One analyst posted a comment on X. picked out A key on-chain indicator that may signal the start of an explosive rise, like the gains in 2017. Bitcoin’s prices are currently stable and moving upwards. The coin has not seen a sharp rise in price as many traders predicted prior to the Halving Event on April 20, but it is still rising.
What is a Bull Run?
Analysts at X have reported that the 7-day Flow average has dropped sharply on major crypto exchanges, such as Binance or Coinbase. The Flow indicator showed a drop from 161,000 BTC to 76,000 BTC. This is a 50% decline.
In 2017, a pattern similar to this emerged before Bitcoin went on an historic bull market.
After a couple of weeks, the Flow index dropped down to 64.500 BTC before the prices exploded up to about $20,000 by December 2017.
Only time will reveal if Bitcoin has a solid future. If you look at the candlestick pattern on the chart for the day, it appears that the coin has remained in its bear formation. Despite the fact that prices have risen since April 20’s “Halving Day”, sellers still control. The price movement is still dominated by the bearish engulfing patterns of April 13. Technically, the close of the day above $68,000 may be the base for the rally to $74,000.
Bitcoins Supply is Rapidly Shrinking
Another analyst discovered an intriguing development while the Flow indicator pointed to declining BTC on exchanges. Another analyst takes to X. noted The Bitcoin network has halved the miner reward for the first two weeks after April 20.
Even if current demand continues, an analyst claims that a tightening of supply would drive up prices. As mentioned above, the rate at which BTC is able to overcome immediate resistance will determine whether it rallies.
Prices tend to rise a few weeks after Halving Day. There have however been some notable exceptions in recent months. As an example, the prices reached new highs just prior to Halving Day. It is the first instance of this happening.
In January 2024, SEC approved first Bitcoin ETFs that went beyond the technicalities. Institutions can gain access to the Bitcoin market through this product. The shifting dynamics of the market will determine price movements in current times, and may lead to deviations from past performances.
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Source: www.newsbtc.com