5 Data Points Suggest Crypto Bull Market Begins in 2023 – Next for 2024
Growing optimism for the spot Bitcoin ETF adoption, the upcoming BTC halving and positive market sentiment suggest the start of a crypto bull market in 2023.
In the year Although 2023 started with little hope of a revival in the crypto market, the events of the year surprised most market participants with the increase in the price of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and many other altcoins.
The high volatility in the crypto market seems to be gathering pace with the expected bull run of 2024.
The global crypto market is worth $1.69 trillion, a 112 percent increase over the past 12 months. The increase was included in the 154% and 93% jump in Bitcoin and Ether prices.
The increase was especially high in some altcoins such as Solana and Avalanche (AVAX), which increased by 880% and 250% respectively.
The main factors promoting the rise in crypto prices are the approval of the Bitcoin Exchange Traded Fund (ETF), the successful Shanghai upgrade of the Ethereum network and the anticipation of the Bitcoin halving event, which is less than 180 days away.
Increasing the chances of approval of a Bitcoin ETF
The conversation around Bitcoin ETFs in the United States continues to intensify.
According to Bloomberg ETF analysis, the probability of getting a BTC ETF by January 10 – the final legal deadline for the US Securities and Exchange Commission to make a decision on some applications – is 90%.
OK, we're close to the deadline for applications for the 3 position #Bitcoin ETF. I'd like to preface it because there's a good chance we'll see delayed orders from the SEC. Delays will not change anything about our outlook and 90% chance for 19b-4 in 2018. January 10, 2024 approval pic.twitter.com/LE7sOlHAHM
— James Seyff (@JSeyff) November 14, 2023
If approved, such an ETF could attract more institutional investors into the space and have a positive impact on the price of not only BTC but also other cryptocurrencies.
According to Bitcoin advocate Michael Saylor, the approval of the Spot Bitcoin ETF could be the biggest development on Wall Street in three decades.
The $BTC Spot ETF may be the biggest development on Wall Street in the last 30 years. My discussion on #Bitcoin in 2024, Spot ETFs vs. $MSTR, and the emergence of bitcoin as a treasury asset with @KaileyLeinz on Bloomberg @Crypto. pic.twitter.com/QtPdBOhMDr
— Michael Saylor⚡️ (@saylor) December 19, 2023
All sets of investors were hoarding Bitcoin.
Significant Bitcoin stakeholders are showing confidence in BTC by increasing their holdings. Glassnode's on-chain data showed a reversal of the trend where long-term holders remained bullish on the prospects of a Bitcoin bull run and continued to add to their holdings as a result.
Bitcoin hodlers scale is an excellent indicator for measuring market cycles. Currently, long-term owners are still accumulating, just like the previous pre-bull markets. pic.twitter.com/fREwfFJziD
— Into TheBlock (@intotheblock) December 27, 2023
Tracking the balances of long-term holders is a strong indicator of local price highs and lows. During each market cycle, there was a clear accumulation of stockholders until domestic prices peaked and stockholders started selling in large quantities to make a profit.
After all, Bitcoin “whales” or entities with at least 1,000 BTC are showing signs of accumulation, which was earlier in historical rallies.
According to a report by blockchain intelligence platform Glassnode on November 27, the Bitcoin Accumulation Trend Score is currently 1 (chart below), indicating that large whales, a large part of the network, are accumulating.
One of the most prominent whales, business intelligence firm MicroStrategy, continues to add to its Bitcoin holdings after buying an additional 14,620 BTC at an average price of $42,110, bringing its total holdings to 189,150 Bitcoin.
#MicroStrategy's recent $615M purchase of #Bitcoin has caused some excitement among traders. We've seen the recent acquisitions and positive news surrounding the #crypto #crypto, now valued at over $8B, drive #market activity. pic.twitter.com/PwAzEc2y1b
— Santiment (@santimentfeed) December 28, 2023
Glassnode's data shows that small entities have broken new highs in 2023 and set storage records.
#Bitcoin Shrimps ($BTC) adding significant balance to their holdings since FTX collapsed.
This group now holds over 1.21M $BTC, which is equivalent to 6.3% of the circulating supply.
Pro Dashboard: pic.twitter.com/7U4oPAAakD
— glassnode (@glassnode) November 28, 2022
As with previous cycles, this continued rally is an indication that mainstream crypto, and the broader crypto market by extension, has yet to peak.
Bitcoin halving and historical data show the potential of BTC
Bitcoin price trends often draw cyclical patterns. Analysts have drawn parallels between the current price path and historical patterns, saying it shows a bullish cycle similar to that seen in 2013 and 2017.
Similarly, Bitcoin's historical bull runs tend to follow four-year cycles, often triggered by events such as the supply reward halving, which slows the rate at which new BTC is created and mined.
The next halving event will occur in the spring of 2024, and typically bull runs begin months before the event and continue until the price of Bitcoin reaches a new all-time high.
#Bitcoin targets $100k in 2024!
⛓️ Half estimate increases.
ETF validation on the horizon.
The 4-year cycle remains strong.
Banks face challenges.
BTC will grow like digital gold.
$9 Trillion Blackrock Backs BTC pic.twitter.com/Hy1eLmk13A
— B Love Network (@NaveenKarothiya) December 23, 2023
In fact, six-figure BTC price predictions have also been increasing over time, as the halving is less than six months away.
While some analysts believe the upcoming halving is crucial, others argue it could play out differently this time around.
Related: Bitcoin Bulls and Bears Set for Year-End $10B in BTC Options
Crypto market sentiment is increasing
Lately, social media circles have seen a resurgence of positivity. The Crypto Fear and Greed Index, a barometer of investor sentiment, stands at a significant point of 73, indicating that “greed” is rampant in the market.
Notably, this index has remained above the 50 mark for the better part of 2023, indicating the positive sentiment market players have for the broader crypto market.
This pattern in market sentiment has been a precursor to previous price rallies and may be an indicator of an upcoming bull run. Interestingly, the last time market sentiment was at this level of greed was in November 2021, when Bitcoin reached its ATH peak of $69,000.
Technical indicators also reflect the bullishness of traders
Total crypto market capitalization broke above the 50-week exponential moving average (EMA) at $1.1 trillion. . Technical traders will want to touch on these key levels before anticipating a reversal.
The Relative Strength Indicator (RSI) has moved into overbought territory for the global crypto market cap, nearing the 80-point resistance, reinforcing the bulls' dominance over the market. The EMAs formed a bullish cross on the weekly chart. This happened on December 4 when the fast-moving 50-week EMA crossed above the 100-week EMA.
Additionally, if buyers build support above $1.75 trillion on positive volumes, the three-month long bull run could extend into 2024.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
