Which Way Is Bitcoin (BTC) Going In Short Term Before A Bull Run?
Perhaps the crypto community has historically not hoped for a Bitcoin bull run more badly than in the current cycle. In the space of just four weeks, Bitcoin (BTC) price rose above the important milestone of $20,000 on four occasions. This psychological factor brings with it the hope for potential rally, considering the painfully bad bear market environment this year. Meanwhile, the Bitcoin trader community looks to be in a no buy zone currently.
What Could Happen Before A Bitcoin Bull Run?
The BTC buying pattern indicates that there was not enough traction in terms of purchases when price fell. According to on chain data from Crypto Quant, there is less short term buying at the moment. This happens as the market fall has been longer than anticipated. Data on the percentage of Bitcoin purchases from 1 week to 1 month shows there is a sideways movement. This could potentially be an ideal buy signal as BTC is likely to take off from this scenario.
“The longer the market falls, the less short term buying.”
More Dip To Follow?
On the flip side, there is another chance of further dip in Bitcoin (BTC) price. This scenario also means a lot of investors could panic sell the cryptocurrency. As a result, new buyers could have reduced confidence in short term profits. Nevertheless, the market would hope that such a scenario would not pan out as market indicators show the bottom is already in. Hence, a Bitcoin rally could be reasonably possible from the current level.
As of writing, BTC price stands at $20,172.03, up 1.29% in the last 24 hours, according to price tracking platform CoinMarketCap. In an encouraging sign for potential bull market conditions, there is a steady growth this week, with a 7 day growth of 6.23%. Meanwhile, the macroeconomic scenario does not look favorable for the crypto market. However, there is reasonable chance that Bitcoin could deviate from correlating with the traditional assets.
While a section of traders in the stock markets believe that the recession is already in, reports suggest there could well be a bad downturn in near future. Recently, a United Nations agency warned several central banks, including the U.S. Fed over recession risks.
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