Bitcoin’s price has been on a tear lately, jumping over 26% since early April and comfortably sitting above $90,000. This is great news, and experts are starting to think a massive bull run might be on the horizon. But let’s not get ahead of ourselves.
Fewer People Selling, More People Holding
A key indicator pointing towards a potential bull run is the significant drop in Bitcoin being deposited into exchanges. Think of it like this: fewer people are putting their Bitcoin up for sale. Data shows the number of Bitcoin addresses depositing to exchanges is at its lowest point since December 2016 – right before the massive 2017 bull market! This suggests that long-term investors are holding onto their Bitcoin, reducing selling pressure.
Bitcoin vs. The Stock Market: A Growing Divide
Interestingly, Bitcoin is starting to act differently than the stock market. While the S&P 500 and NASDAQ are struggling due to global uncertainty, Bitcoin is surging. This suggests that investors are increasingly viewing Bitcoin as a safe haven asset – a place to park their money during times of economic instability. This divergence from traditional markets is a strong sign of Bitcoin’s growing independence.
Price Action: What to Watch For
Bitcoin’s currently trading around $92,300, having recently touched nearly $95,000. $95,000 is a key resistance level. Breaking through it could send Bitcoin soaring towards $100,000. However, a slight price dip wouldn’t be surprising before any major breakout. The $88,500 level is a crucial support level to watch. Staying above it would confirm the bullish trend. Falling below it could signal a temporary setback.
The Bottom Line
While global uncertainty still exists, the current indicators for Bitcoin are overwhelmingly positive. The reduced selling pressure, decoupling from traditional markets, and strong price action all suggest a potential for significant growth. Whether this translates into a massive bull run remains to be seen, but the signs are certainly encouraging.
