As per the latest reports, the CryptoQuant Bull-Bear Market Cycle Indicator has turned bullish again. This recent update might be seen as a transition from a bear phase to an initial sign of a new bull market this year.
When looking below in the chart, the color signals in the indicator range from dark blue, implying an “Extreme Bear” setup, to red, indicating an “Overheated Bull” phase. The monthly update outlines how the bearish phase has ended and the market has resumed a bullish trend.
Moreover, the strong rebound in price has formed the “Early Bull” area at the same time. When flips from bearish to bullish happen historically, rallies in the price usually occur afterward. Similarly, big movements followed the same pattern in 2016 and 2020, by raising Bitcoin price.
Bitcoin price has been steadily gaining momentum over the past months, resulting in it achieving new psychological points. Moreover, the line chart demonstrates how the Bull-Bear Indicator compares with Bitcoin’s 30-day and 365-day moving averages.
Based on the above metric, the momentum is picking up, since the 30-day numbers are now above the long-term average. For people interested in the market, this indicator allows them to see cycles in Bitcoin without using only intuition.
Determining the future is not possible for any tool, but this flip could point to positive developments in combination with other trends and increased interest from institutions.
Also Read: You Only Need $8B to 51% Attack Bitcoin: Fact Check
Note: The cryptocurrency market is highly volatile as of today. Make sure to thoroughly study the market before making any investment in it. Although the bulls are picking up pace, this industry is highly unpredictable.
