Data Explained: The Crypto Bull Market Has Kicked Off in 2023, What's Next?

ORIGINAL AUTHOR: NANCY LUBALE

Original compilation: Deep Tide TechFlow

There is growing optimism about the approval of SpotBitcoin ETFs, and the upcoming BTC Halving as well as positive market sentiment suggest that Crypto AssetsBull Market will start in 2023.

Although at the beginning of 2023, investors had little hope for the recovery of the crypto market, what happened this year surprised most market participants, with the prices of Bitcoin, Ethereum, Solana, and many other AltCoins soaring. The high Fluctuation of the crypto market seems to be increasing, and a Bull Market is expected in 2024.

The global Crypto Assets market has a Market Cap of $1.69 trillion, up 112% from the last 12 months. The prices of Bitcoin and Ethereum increased by 154% and 93%, respectively. Among AltCoins, this growth is even more significant, such as Solana and Avalanche (AVAX), which rose 880% and 250% respectively over the same period.

The main factors driving the price of Crypto Assets include the rise of the probability of BitcoinSpot ETF approval, the successful upgrade of the Ethereum network in Shanghai, and the BitcoinHalving.

The probability of BitcoinSpot ETF approval increases

In the United States, the discussion of Bitcoin ETFs continues to heat up.

According to Bloomberg’s ETF analysis, there is a 90% chance that an Spot BTC ETF will be approved by January 10, the final statutory deadline for the U.S. SEC to make a decision on a portion of the application.

If approved, such an ETF could attract more institutional investors into the space, positively affecting not only BTC, but also the prices of other Crypto Assets.

Bitcoin advocate Michael Saylor (founder of MicroStrategy) said the approval of the SpotBitcoin ETF could be the biggest development on Wall Street in three decades.

All investor groups are accumulating Bitcoin

Bitcoin holders have shown confidence in BTC by increasing their Holdings. On-chain data from Glassnode shows a reversal of the trend, where long-term holders are optimistic about the prospects of the BitcoinBull Market, so they continue to increase their Holdings.

Keeping track of long-term holders’ balances has always been a powerful indicator of price tops and bottoms. During each market cycle, the accumulation of holders can be clearly seen until the local price peaks and holders begin to sell in large quantities to realize gains.

What’s more, BitcoinWhale holding at least 1000 BTC show signs of accumulation, which historically preceded significant Rebound.

According to a report published by Glassnode on November 27, the cumulative trend score for Bitcoin is currently 1, indicating that BitcoinWhale is buying Bitcoin overall.

The well-known BitcoinWhale, MicroStrategy, continues to increase its Bitcoin holdings to 189, 150 Bitcoin after buying an additional Bitcoin of 42, 620 at an average price of $14, 110 per Bitcoin.

Glassnode’s data also shows that investors with lower capital sizes also set a cumulative record for Bitcoin in 2023, constantly updating new all-time highs.

As with previous cycles, this ongoing accumulation is a potential indicator that the Crypto Assets market has not yet reached its price maximum.

BitcoinHalving and historical data highlight the potential

Bitcoin’s price trend tends to show a cyclical pattern. Analysts have compared the current price trajectory to historical patterns, suggesting that the current situation may resemble the potential Bull Market cycles of 2013 and 2017.

Similarly, Bitcoin historical Bull Market tend to follow a four-year cycle, often driven by events such as BitcoinHalving, which drop the rate at which Miner create and earn new Bitcoin.

The next Halving event will occur in the spring of 2024, and past data suggests that the Bull Market could begin a few months before the Halving event and continue until the Bitcoin price reaches new all-time highs.

In fact, with less than six months to go before the Halving event, more and more people are predicting that the price of BTC will reach 6 figures.

Crypto market sentiment continues to rise

Recently, social media circles have witnessed a resurgence of positive emotions. The Crypto Fear & Greed Index is a barometer of investor sentiment and currently has a score of 73, indicating a general state of greed in the market.

Notably, this index has remained above 50 for most of 2023, suggesting that market participants are positive about the broader crypto market.

This pattern of market sentiment has been a harbinger of rising prices in the past and may be an indicator of an upcoming Bull Market. It could also be an indicator of an upcoming Bull Market. Interestingly, the last time market sentiment reached this level of greed was in November 2021, when Bitcoin reached an ATH high of $69, 000.

Technical indicators also reflect the bullish sentiment of traders

On October 23, the Crypto Assets total Market Cap topped the 50-week Index MA (EMA) to $1.1 trillion, and at the time of writing, the total Market Cap has reached $1.632 trillion. Buyers may have set their sights on the April 2022 peak range of $2.168 trillion. Technical traders look for these key indicators before anticipating a reversal.

The RSI (RSI) of the global Crypto AssetsMarket Cap has entered the Overbought zone, approaching the 80-point resistance level, which strengthens the dominance of the bulls in the market. The EMA has also formed a bullish crossover on the weekly chart.

Moreover, if buyers build support above the $1.75 trillion mark with positive trading volume, the three-month rise could continue into 2024.