Coinfeeds Daily → Key Bitcoin Indicator Reappears After 8 Years

Key Bitcoin Indicator Reappears After 8 Years

Published: Nov 12, 2023 | Last Updated: Nov 12, 2023
Howard Kane

Rare buy signals, ETF anticipation, and caution for investors as Bitcoin's value surges past $37,000, signaling a potential historic bull run.

Understanding Bitcoin's Potential Bull Run

Bitcoin, the world's leading cryptocurrency, has recently seen a significant surge in value, crossing the $37,000 mark for the first time in 18 months. This increase is fueling speculation and excitement among investors, as it could be an indicator of an upcoming major bull run—the largest in Bitcoin's history. But what's driving this potential rally, and what should investors be aware of?

Key Indicators of a Bull Run

Several factors are contributing to the optimistic outlook for Bitcoin. A key indicator is the appearance of a rare buy signal on the M-Chart, an event that has only occurred once before, eight years ago. This signal is considered by many to be a strong predictor of a significant price increase. Additionally, Bitcoin's recent performance has seen it break through the SMA 20 line—a technical indicator that often signifies bullish momentum.

The Role of Bitcoin ETFs

The excitement around Bitcoin's potential bull run is also linked to the anticipation of the first spot Bitcoin Exchange-Traded Fund (ETF) being approved by regulators. An ETF would make it easier for institutional investors to gain exposure to Bitcoin without owning the cryptocurrency directly, potentially leading to increased demand and higher prices. The market is particularly abuzz with the possibility of investment giant BlackRock entering the space, as the approval of 12 separate Bitcoin ETF spots is under consideration.

Cautions and Considerations

Despite these positive signs, experts caution that the approval of a Bitcoin ETF does not automatically ensure a continued rally. The cryptocurrency market is known for its volatility, and while historical data may suggest a bull run, there are no guarantees in investing. Furthermore, most Bitcoin holders are currently in profit, and the $34,000 level is seen as a critical support that needs to be maintained.

Investors are advised to watch the $40,000 resistance level closely, as surpassing it could confirm the bullish trend. However, they should also be prepared for any shifts in market sentiment that could lead to rapid price changes.

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