The massive Bitcoin gain in January gave on-chain experts renewed confidence that the bears are on the run and that we have entered a new bull market cycle.
Charles Edwards, the founder of Capriole Fund and a Bitcoin trader, detailed why he believes a new bull market has begun on Feb. 3.
“We’re probably at the beginning of a new cyclical Bitcoin bull market, inside the volatility circle,” he added.
The chart used to support the idea looks at locations that are profitable. According to the chart, the measure has also increased from 50% to 70%, indicating a new turning point.
Previous profit-turning moments for BTC addresses have corresponded with market transitions from bear to bull. They are also followed by times of extreme volatility.
According to Edwards, we have just experienced a “major momentum shift to the upside that is emblematic of a market regime transition.” He went on to say:
“The 40% rally in January gives good odds that we have transitioned from a bear market into the early stages of a new bull market which will peak post 2024 halving.”
Furthermore, market mood has clearly moved, as demonstrated by the fear and greed index, which remains in the greed zone.
Scott Melker (aka Wolf of All Streets), a fellow trader and analyst, stated that $25,212 was a critical threshold for Bitcoin. “A break above would be the first higher high since $69,000, technically invalidating the bear argument,” he explained.
Prices, however, do not travel in a straight line, and technical indicators like the RSI indicate that Bitcoin is now overbought. This might result in a greater drop over the following several weeks before the uptrend resumes. With this year’s surge, there have also been concerns about market manipulation.
At the time of writing, Bitcoin has fallen 1.8% on the day. As a consequence, the king of crypto was changing hands for $23,482 after briefly exceeding $24,000 in the early hours of February 3.
Furthermore, the asset has gained 11.4% in the last two weeks and 41% in the last month. It has had the nicest January since 2013.
With three failed efforts to breach it this week, the $24,000 price level is proving to be strong barrier. If the purchasing pressure is expended over the weekend, a drop below support at $21,000 might be inevitable.
