Crypto Quant Data Hints An Imminent Bitcoin Price Rally, Will It Be Strong?
The beginning of 2022 has been rocky for the world’s largest cryptocurrency, Bitcoin. Many experts believe the digital token will eventually hit the $100K price. For them, this is not a case of if but when. Deutsche Bank also reported that some Bitcoin investors see BTC reaching a price of $110,000 in five years.
Meanwhile, experts warn new crypto investors, stating they should be cautious about how much they wish to invest. They mentioned this considering the volatility of BTC in recent times.
The token had displayed a remarkable rise in value over the years. So even though the market is still bearish, investors anticipate a short-term bull run in its price soon.
Briefing On Bitcoin Price Movement
While the crypto market currently looks unfavorable for investors, BTC is seemingly shaping up for a rebound. It has remained around the $19K price level since dropping from $22,000 in September. Bitcoin has maintained a ranging movement, which many believe is a sign of, at least, a short-term rally.
The unfavorable price movement of Bitcoin can be traced to multiple factors coinciding with the current global financial downtime. Another major factor that led to the drop in the crypto market was the crash of Terra.
Since mid-June this year, the event has kept BTC hovering around the $20K price mark. Though there were times it went past this price level.
Anticipated BTC Rebound
While the market remains in the bear zone, the crypto market is showing signs of a rebound. This is evident from the on-chain data of the digital currency market. As per data from Crypto Quant, investors can anticipate a long and robust bullish trend in the market.
A report shows that BTC displayed some growth in its daily and weekly volume. This fact usually indicates the build-up of a solid and long bullish trend. On this basis, investors hope for a bullish market in a short while.
Though these signs are not new, given that on multiple occasions in March 2022, they were also seen. At the time of writing, the Bitcoin price stands at $18,712 with a price change of 2.31%.
Experts cited that a bullish turn in BTC price is still farfetched. Their predictions are based on the historical trend of the crypto market, which typically lasts 24 to 27 months.
Florian Grummes also expressed his thoughts about the current crypto winter. Grummes is the director at Midas Touch Consulting. In his speech, he stated that the crypto crash might last for another year based on the historical pattern.Source