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Bitcoin Still Lacks This On-Chain Signal of a BTC Bull – David Puell

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bitcoin (BTCIt only needs one more major on-chain signal to kick off the classic bull market, says analyst David Bell.

in tweet On December 17, creator Puell Multiple said that the stage is almost ready for the end of the BTC bear market.

Puell: Bitcoin Network Activity ‘Disappointing’

Despite numerous calls for new lows for BTC/USD $12,000 or less In this cycle, not everyone is completely bearish when it comes to bitcoin’s prospects.

For Boyle, two fundamental on-chain phenomena are necessary to recover the Bitcoin price.

Holders of long-term contracts (LTHs) are resisting the urge to sell even though bitcoin is down more than 70% from its latest all-time high.

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At the same time, the short-term “scalpers” are feeling sharp pain from the recent price action. As Cointelegraph mentionedIt is likely that these “tourists” have mostly gone from the market.

Boyle believes that all that is missing is more network activity from all participants.

“In the chain, three factors are needed for the bull: 1. Behaviors derived from long-term investors. 2. Painful losses from short-term speculators. 3. Network activity across the board,” he summed up.

“Seeing 1 and 2.3 in person is still frustrating.”

He added that “favorable” macro conditions will help the transition, as well as cryptocurrencies becoming more resilient in the face of “infections” in the form of “external and internal” swans.

BTC/USD is trading around $16,700 at the time of writing, data from Cointelegraph Markets Pro And the TradingView show up.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin halving cycle like any other?

This perspective chimes with others calling for calm on BTC’s current price performance.

Related: Bitcoin Targets $16.7K Amid Fears BNB May ‘Drag the Entire Crypto Market Down’

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Among them is a popular mitigation-resistant analytics account that drew attention today to BTC/USD simply copying past bear market behavior.

The proof came in the form of the Bitcoin MVRV-z Score – an expression of the market value of the realized market value in standard deviations. Dilution Resistance initially called the metric “Market Value-to-Realised-Value Temperature (MVRVT)”.

At the moment, the accompanying charts have shown that the signs point to the formation of a classic bear market bottom, which is resistant to mitigation Mentionsed that bitcoin is “just doing what it does on the post-halving date each cycle”.

Bitcoin Market Value Realized Value Temperature Chart (MVRVT). Source: Dilution-proof / Twitter

Formerly Cointelegraph included MVRV-z is on its list of “stunning similarities” between the 2022 and previous pricing cycles.

The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.