[vc_row][vc_column][vc_column_text]Bitcoin has experienced a significant trend change; the market sentiment has also changed in 2023. Since breaking from consolidation, Bitcoin’s momentum has shifted to the upside, transitioning from a bear market to potentially the early stages of a new bull market.
In a monthly , veteran quant investor and the inventor of the Hash Ribbon indicator, Charles Edwards, share essential industry updates, significant trends, and technical and fundamental analysis related to Bitcoin.
A Momentum-Driven Shift, A New Regime For Bitcoin
According to Edwards, as prices become more attractive, the market becomes saturated with long-term holders, those who do not intend to sell until prices are significantly higher.
(…) “We saw the same long liquidation, capitulation and short squeeze structure in mid-2021 as in January 2023. Both lasted 9.5 weeks. In crypto, we call this a “sell side liquidity crisis”.
Bitcoin Bear Market Bottom Confirmed?
Bitcoin’s Percent Addresses in Profit metric has bounced from a typical bear market low of 50% to 70% to this date. The typical bear market pattern shows a performance grind down in addresses in profit as long-term holders see the value of their Bitcoin plummet.
(…) “Percent addresses in profit have bounced significantly from 50-70%, a structure which usually sees some profit taking, but also marks a regime change”.
Related Reading: This Lesser Known Altcoin Blows Up 91% In The Last Week – Find Out Here
In brief, Edwards and Capriole Investments have identified confluences and several factors for Bitcoin’s recent breakout and further upside price action in the coming months:
- Optimal halving cycle timing where Bitcoin typically bottoms (Q4 2022 and Q1 2023).
- Bitcoin cycle drawdown has hit typical -80% levels.
- In November/December, Sentiment was at its worst, and market hedging was at its highest on record.
- Gold strength in November/December as a lead for Bitcoin in January onward. More in our December Newsletter.
- A likely Fed rate pause and change of policy in 2023.
All of the above suggests that the market is at the early stages of a new Bitcoin bull market regime.
Bitcoin is currently trading at $23.450. It’s 2.1% down in the last 24 hours despite the favorable news after the Federal Reserve (Fed) raised the basis points by 0.25%. Bitcoin still has managed to profit in the seven days, up 1.8%. Bitcoin’s price action suggests a pullback to the support line for a further counterattack to regain the $24.500 level.
Featured Image from Unsplash, chart From TradingView.[/vc_column_text][/vc_column][/vc_row]
