CNBC Brian Kelly Bitcoin builds on the bull case by referencing a different metric that, in the past, calmed down before a price storm.
Uncertainty reigns, and market sentiment extremely frightened. Therefore, the story of the return of the crypto winter is strong. However, Kelly’s analysis leads her to believe it’s time to gear up for a breakout.
Bitcoin Bull Run Still on Track
From peak to trough, a 54% drop from the all-time high of $65k was enough to shake the market. short term investors Exited their positions at a loss for fear of further downside.
Bitcoin’s flat performance hasn’t helped the matter as it is priced at $29k. For the past two weeks, BTC has been confined between $35k and $41k on a daily close.
Source: BTCUSD on TradingView.com
However, CNBC’s Brian Kelly constructed the bull case by citing the rate of bitcoin address growth compared to expected address growth. He said the actual address growth is flat, while the expected address growth has declined.
Source: CNBC Television on YouTube.com
“For me, when you look at bitcoin it’s about network effect and really address growth. So, one of the key metrics I look at when I’m managing crypto is, That is, how fast the addresses are growing compared to what the market expects.
Kelly points out that the last time there was a similar divergence in addresses was in March 2020, during the “corona-crash”. The resulting price action saw an increase of +1,750% over 13 months, reaching $65k.
“Generally speaking, when bitcoin gets that wrong price, it’s a sign of a downward process. So, we look back to March 2020 when we had a huge gap, at that time bitcoin was thirty five hundred and it was sixty five.” had increased to a thousand.”
Supporting this view, Kelly noted that the fundamentals are the same as those still around in institutions. The hedge narrative remains, and regulatory authorities continue to express a desire to work with crypto rather than ban it.
Is Bull Run Still Sustainable?
Reaching an all-time high, then experiencing a sharp 54% drop, is a signal enough for many to signal the end of the bitcoin bull run.
automation Engineer, alexandros rumpos, points out that the crypto bull period usually lasts 460-518 days. This current phase is only 370 days in, but he is certainly cautious in declaring that the bull run is on.
“It seems the market is split in the middle. A part believes that we are in a bearish phase and that the cycle has come to an end due to a major correction. The other half believes that we haven’t seen big gains in this bullish momentum and that we are in a healthy correction.
However, some analysts said this time due to the influence of institutional funds, higher volatility in the price and a longer rally has been pointed out.
However, as Rompos makes clear, no one can predict the future.