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3 Major Signs We're Kicking Off 2022 With a BULLISH Outlook On Bitcoin...
It's a new year, and when the previous year saw record highs set for every major crypto asset, people naturally wonder if a bearish market is around the corner.
Like every market, eventually it will be our turn, thankfully crypto has a history of fairly short bearish terms followed by a bullish market that exceeds the prior one.
However, it doesn't look like we're there yet - these 3 indicators would absolutely look different if we were entering a bearish market:
Those Who Recently Sold Aren't Leaving...
Speculative traders who made large sales in December are now re-purchasing, according to analysis by Willy Woo.
This includes a number of hedge funds who sold in December to take a profit, and are now redeploying their capital.
Long Term Hodlers Continue Accumulating...
We're seeing wallets that hold and do not trade Bitcoin taking advantage of the current price dip to accumulate more. These are people who have bought Bitcoin and left it untouched for at least 6 months.
This category of trader currently holds the most Bitcoin.
We can logically assume they believe we have not yet seen Bitcoin's all time high, and that the profits possible are so great, they don't bother participating in short-term opportunities to profit by selling and re-buying price swings.
No Increased Inflow To Exchanges...
Bitcoin investors who hold a sizeable amount of coins typically move those coins out of exchange accounts after buying them, and into offline cold storage to keep their coins secure.
This means that before they can sell their coins, they need to first transfer them back to an exchange account for trading - and currently, this is not happening.
We continue the 2021 trend of more tokens leaving exchanges than being moved back to them.
In Closing...
I am aware, as you should be as well, that things can change fast. Sometimes triggered by totally irrational panic selling, other times by major real-world events.
The thing is - nobody can plan for things that may or may not come at any time.
But you can be prepared - while I stand by this report I'd also like to include a reminder to be smart. Set stop-losses, have a plan to make sure if things take a sudden turn, you're walking away with most of what you earned.
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Author: Mark Pippen
London News Desk
Breaking Crypto News
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