Bitcoin just made new all-time high highs and seems to be in a consolidation phase. Yet, a boatload of traditional on-chain metrics suggest the bull market is far from exhausted. Bitcoin bull market not even halfway done yet, say market analysts. Bull market still has lots of gas in the tank. Which, as we explained in last week’s Bitcoin Briefing, means that Bitcoin investors should “hold 100%” at current prices — despite all-time highs and Q2 gains of 30%.
Bitcoin’s comeback since April bottoms beneath $75,000 has now encountered three rejections from resistance. Bitcoin is still holding above $105K as bullish and bearish disagree on oil price predictions.
On-Chain Indicators Suggest Further Upside
Three indicators — Pi Cycle Top, Market Value to Realized Value (MVRV), and long-term Relative Strength Index (RSI) — demonstrate Bitcoin bull market still has room to run. CoinGlass has put together a list of 30 different bull market top indicators. They suggest that Bitcoin prices have plenty of room left to increase – by as much as 120%. And not one of the 30 indicators has ever flashed a long-term top signal to date.
Bitcoin all-time highs aren’t a good enough reason to sell based on a smorgasbord of 30 different “bull market peak” indicators. Some of those models say Bitcoin will be $135K to $230K this cycle. Abbe, now a market analyst, has described the latest Bitcoin bull market as one with “unlimited upside.” He grounds his optimism on a range of positive signs.
Market Volatility and Potential Consolidation
Based on end of 2021 price action past Bitcoin price uptrend likely to face choppiness ahead. Bitcoin has experienced some of its largest gains, with over a 30% increase just during Q2. John Bollinger recently cautioned that the Bitcoin price uptrend is likely to be followed by a consolidation – or possibly a complete reversal.
Bitcoin is nearing a full recovery from its April lows under $75k. As the Bollinger Bands volatility indicator illustrates, since then it’s rattled three rejections from resistance. In light of this, one might think that many analysts would start questioning Bitcoin’s long-term potential.
Counterarguments to Market Fizzling
The counterargument to that bull market fizzing out is institutional demand. A third counterargument to the bull market fizzling is a more mature market environment. These factors all indicate that Bitcoin’s current rally is backed not only by solid underlying fundamentals but widespread mainstream adoption.
The long-term outlook is still bullish for Bitcoin. The increasing involvement of institutional investors and the maturation of the cryptocurrency market provide a solid foundation for future growth.
