Nred Arquitectos

Bitcoin Bull Run? On-Chain Signals Point to $20k Return

1. Analysts are predicting that Bitcoin’s year-long bear cycle could be over, with the price surging by over $5,000 since the start of the year and reclaiming $20,000.
2. CryptoQuant and Glassnode have identified key on-chain signals that point to the start of a bull run, such as the transfers of funds out of exchanges to wallets and the increased demand for Bitcoin from institutional investors.
3. Other positive indicators include a decreased supply of Bitcoin held on centralized exchanges, a higher number of whale addresses and an increase in the number of active addresses.

The start of 2021 has marked the end of Bitcoin’s year-long bear cycle, with the price surging by over $5,000 since the start of the year and reclaiming $20,000. This has been met with much optimism by crypto analysts, with CryptoQuant and Glassnode both offering insightful analysis into the on-chain signals that could suggest the start of a bull run.

Starting with CryptoQuant, the analysts have identified the transfers of funds out of exchanges to wallets as a positive sign. This indicates that investors are taking the initiative to move their Bitcoin off the exchanges and into their own wallets, effectively taking control of their private keys and securing their funds from potential hacks or scams. This also points to an increased demand for Bitcoin from institutional investors, with the analysts also noting an increase in the number of whale addresses, signifying a more concentrated ownership of the asset.

On top of this, Glassnode has identified a decreased supply of Bitcoin held on centralized exchanges as a positive indicator. This suggests that investors are becoming more confident in the asset, with fewer people wanting to sell their coins. This has been accompanied by an increase in the number of active addresses, with the number of daily active addresses reaching highs not seen since December 2020.

All these indicators point to an increased demand for Bitcoin and an increased confidence in the asset. This has been seen in the price movements, with Bitcoin crossing the $20,000 mark and continuing to surge in the past few days. However, it is important to note that while these indicators can offer insight into the market, they do not guarantee a sustained bull run. It is important for investors to exercise caution and do their own research before making any decisions.

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