Bitcoin is currently trading at $46.7k after a bearish weekend that saw the index plunge slightly below $44k again. The largest cryptocurrency by market capitalization looked all set to continue beyond $52k just a week or so go ago but the ensuing dip poured cold water on that aspirations. Now statistics show that the cryptocurrency index may turn bullish yet again in the near future with a “Gold Cross” expected and exchange reserves hitting record lows.
The first and foremost indication of a looming bull run is that the cryptocurrency begins disappearing from cryptocurrency exchanges and into long-term wallets. According to latest statistics, the amount held by top crypto exchanges is nearing record lows. The more BTC is held by the exchanges, the more BTC is traded on a daily basis and meet the supply demands. If the crypto is being pulled out of the exchanges, it is creating a supply-and-demand gap that will ultimately leave new buyers wanting. That is the theory here.
But, the cryptocurrency has a history of stretched exchange accumulation and no bull runs in sight. For more indications, we have to see other statistics.
The latest technical analysis shows that a Golden Cross is being formed by the cryptocurrency. When the crypto was falling swiftly, analysts were watching out for the death cross that would have potentially turned the tide in favour of the bears but now it seems like a Golden cross is in the making. The short-term moving averages are now turning bullish again and are now close to overtaking the more long-term moving averages showcasing a Golden cross in the making.
Image Source: Trading View
While the Golden cross itself is not a great bullish indicator on its own, when coupled with record low exchange reserves it does make a setting for a strong comeback of the cryptocurrency.
Bitcoin’s bull run was seen as being under threat due to the development of last week in which the index went below $44k. However, the digital currency has stabilized since then and the index is looking bullish again on the back of several very important stats. However, the bulls have a lot of work to do to carry on the long-term bull run starting with the $50k resistance. The cryptocurrency needs to overcome this key level convincingly and not fall back below it in the process as was experienced last time around. The bulls need to continue on in any hope of finding the once-thought lost cause of the bull run.
Image Source: pixabay.com
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