Three Reasons Why Bitcoin [BTC] is Bullish in the Short-Term

20 Jul, 2020 Updated 08 Apr, 2022

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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com

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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Bullish On-Chain Indicators

Miners account for a large portion of the sell-off in the market, the recovery in the hashrate is a hugely positive signal for the market. Moreover, according to Ki Young Ju, CEO of analytics firm, Crypto Quant, the outflow is suggesting a limited sell-off as well. He tweeted,

On-chain Indicators Status: BUY

– Miners are not selling (based on MPI, Miner Outflows)
– No significant #BTCexchange inflows from whales so far
– All exchanges’ reserve hit the year-low a month ago and keep that low

DeFi Pump Continues

The DeFi pump is still on as double-digit gains of popular DeFi tokens continues to rage on. The total market capitalization of these tokens is just south of $10 billion. While COMP and MKR tokens are underperforming, 2nd and 3rd tier projects like Aave (LEND), Sytheticx (SNX), Thorchain (RUNE) and so on are compiling gains.

SpartanBlack (alias), a crypto analyst and partner at The Spartan Group tweeted,

As you go out the risk curve and look for the next DeFi star, this is the risk you need to weigh, and it needs to be priced in. Be wary of projects that over-promise and fail to deliver.

GOLD and SPX

The traditional markets are also in accumulation right now. SPX index is currently facing resistance for the break-down point of the COVID-19 crash at $3230. Moreover, gold made a new yearly high at $1820.6.

As for the bearish arguments, the resistance around the $10,000 level is still intact, with no sight of an uptrend in the global economic outlook. Moreover, Bitcoin [BTC] has already gained over 150% from lows after the COVID-19 crash, this reduces the apparent opportunity of inflows further. A break-out of the resistance around $10,500 will be significant for the bulls, while the long accumulation above $9000 is positive as well.

Do you think the crypto market is prepared for a new bull run? Please share your views with us.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.