– THIS is the main reason why
Bitcoin [BTC] is in a downtrend on the weekly chart but an uptrend on the monthly chart. It has been consolidating in the $50k-$70k range since March.
While traders and investors may be frustrated with the lack of movement, BTC remains extremely bullish on higher time frames.
As one prominent crypto analyst pointed out, Bitcoin has closed six monthly trading sessions above the March 2021 monthly trading session close.
Even the halving event and a lot of FUD in the market was not enough to push the king of crypto from its position.
Unprecedented Bitcoin Price Performance
In terms of pure percentage gains, previous Bitcoin cycles were stronger. However, this one has something unprecedented. During the 2024 BTC halving event in April, the price was above $61k.
It has traded at or very close to the previous cycle's ATH during and after the halving event. During the 2020 cycle's halving event, BTC's price fell nearly 60% from ATH, compared to about 10% this cycle.
Therefore, despite the lower time frame volatility, Bitcoin remains extremely bullish for long-term investors.
NVT values encourage buyers
The 30-day simple moving average of the NVT golden cross is -0.14. Typically, values above 2.2 indicate a cycle top, and below -1 a possible bottom. Therefore, the Bitcoin bull run has a long way to go.
The Average Dollar Investment Age started to decline in November 2023, as prices rose rapidly. It has been relatively stable over the past few months.
A falling MDIA is a sign of investments returning to circulation and of newer investments.
MDIA could continue to decline further from 269 to the previous cycle low at 51 before its continued uptrend begins to indicate network stagnation.
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