Bitcoin Network Showing Clear Bullish Signs
According to Bitcoin Bravado analyst Jack, cryptocurrencies, especially BTC, are looking especially bullish at the moment. In a recent Twitter post, the trader drew attention to three figures to back his point: mining revenue, daily transactions on Bitcoin, and BTC transaction fees.
He remarked that miners’ revenue reaching historical support, daily transactions closing in on their all-time highs, and fees spiking while remaining manageable are all signs that the “bear market [is] coming to an end.” Jack then quipped: “UP IS THE WAY,” accentuating his optimism.
Jack’s recent comments come after Binance Research made similar remarks after April 2nd’s move. Per previous reports, the research arm of the world-renowned exchange claimed that Bitcoin’s mining difficulty and hashrate have recovered strongly off December 2018’s lows, a sign which some analysts clear-cut indicator of a bottom.
Interestingly, while network fundamentals are decidedly bullish, they may signal that a short-term pullback is inbound.
David Puell, the head of research at Murad Mahmudov’s crypto-focused investment group Adaptive Capital, unveiled earlier this month an updated version of NVT Signal (NVTS), which relates network value and the 90-day moving average of daily transactional value to try and discern market trends.
The indicator, which utilizes data from the American analytics startup CoinMetrics, is currently trending higher (and has been since January), underscoring that the Bitcoin blockchain is showing signs of life, even following 2018’s dramatic downturn. But that isn’t the whole story. As Puell depicts, the current action in NVTS resembles that seen in early-2015, which was during a bear market recovery, but prior to Bitcoin’s final act of capitulation in that cycle.
Thus, if history repeats itself, the ongoing uptick in NVTS could be shut down by a dramatic BTC wick below $3,000. As Puell spells out in the reply under his original message, the chart above “implies [that there will be] a pullback before transaction finally spikes, followed by a confirmed bull run.”
Technicals, Too, Are Making Crypto Look Hot
Regardless of Puell’s point, there is no mistaking that the Bitcoin Network has started to actually garner traction as a transactional platform. But this isn’t the only thing that’s going for BTC. Technicals, too, are showing signs that Bitcoin and other cryptocurrencies are far from dead in the water.
Trader B.Biddles recently remarked, Bitcoin’s one-week chart from August to now impeccably resembles a “bump-and-run reversal bottom” (BARR Bottom) shown in a notable technical analysis book. If the BARR Bottom trend plays out as the textbook’s author, Thomas Bulkowski, explains, BTC will soon see an “uphill run” that will catapult cryptocurrencies into their next bull run.
Crypto Thies would agree. Thies noted that the two-week Moving Average Convergence Divergence (MACD) measure has flipped green, signaling a long-term trend reversal; his in-house Market God indicator has issued a “buy”; the 30-day exponential moving average and 90-day had crossed over, and Bollinger Bands are currently signaling that BTC could rush “straight to $8,000.” But is this just wishful thinking? At this point, no one is all too sure.
Title Image Courtesy of Aleksi Raisa Via Unsplash