Bitcoin’s Current Market Dynamics Differ From 2021’s ‘Pre-Bull Run Era’ Says Analyst
According to Alex Kruger, a cryptoanalyst-cum-economist, the current crypto market dynamics are nothing like those seen in the 2021 pre-bull run period. July 2021 marked a period of consolidation shortly after Bitcoin printed a death cross in late June.
Bitcoin had marked lows at $28,800 days after making the bearish crossover and then entered sideways trade. The main asset consolidated for nearly a month before resurrecting a positive move in late July 2021. Bitcoin thus hit all-time highs of $69,000 on November 10.
The analyst explained, ”Saying this as many are comparing now with Jun-Jul 2021. Technically, charts are very similar, but (macro) fundamentals changed, valuations are much larger, and there is not as many shorts to squeeze.”
Kruger, however, remains bullish on a break above $46,000: “I’m still looking for a break higher in $BTC at 46,000. size for long-term play,’ he says.
Bitcoin miners’ Outflow Volume reaches one-month high
According to Glassnode data, Bitcoin Miners to Exchange Flow (7d MA) continue to set new highs. This metric just reached a one-month high of 6.639 BTC after setting a previous high of 6.509 BTC on Jan. 17.
Similarly, the miners’ exit volume (7d MA) also hit a 1-month high of 71.859 BTC. The previous 1-month high of 71.462 BTC was seen on December 28, 2021, when Bitcoin fell from $50,720 to $47,300.
The increase in the number of coins available for liquidation on exchanges could indicate downside concerns for the leading crypto.
In the past, such spikes in miner outflows have signaled price declines, but they don’t always guarantee that a decline is underway. It will be interesting to watch whether the recent surge in miner outflows drives prices down significantly or traps the bears on the wrong side of the market.
At press time, the cryptocurrency is trading near $41,634, a near 2% drop on the day. Prices are trapped in the range of $40,000 to $44,000 for the second week since Jan. 6.
