Bitcoin has seen a strong reversal since last week’s highs. The cryptocurrency, which traded as high as $7,470 last week, is now changing hands for $6,550 — 12.5% below the highs, but nearly 80% higher than the $3,700 bottom seen in mid-March.

There’s a growing sentiment that recent weakness is a sign that there will soon be a strong bearish reversal back towards the lows, but according to a crypto analytics firm, a key signal that marked the start of 2019’s bull run has appeared yet again. This may suggest that bulls are ready to continue to push Bitcoin higher.

Related Reading: Ethereum Firm Launches Controversial Product, and the Crypto Community Isn’t Pleased

Bitcoin Interest Is Exploding: What It Means

According to data shared by Glassnode, a leading crypto metrics provider, on April 15th, there’s been a strong increase in the number for “daily new entities on the Bitcoin network.”

The metric’s seven-day moving average, which calculates the number of new users entering the BTC network, has risen from the 6,000 lows in mid-March to 17,000 just recently, an increase of nearly 200% in just a few weeks’ time.

This is interesting as the metric hasn’t been this high since around April 2019, as the rally from the $3,000s and $4,000s bottom to the $14,000 peak by late-June was starting. The metric did immediately dip after hitting the 17,000 level but remained relatively high until the market peak in June, then fell off dramatically as Bitcoin crashed from its highs.

Fundamentally, growing interest in Bitcoin coinciding with bull runs makes sense: more people interested in cryptocurrency means more buying pressure, which correlates with higher prices as increased demand causes a dynamic in which there is unlikely enough supply at a certain price to keep a market satisfied.

Should historical precedent be upheld, a rally could follow.

Related Reading: This Market Cycle Analysis Suggests Bitcoin Isn’t Done Crashing Yet

Not the Only Positive Sign

It isn’t only the influx of new arrivals into the cryptocurrency space that could be a boon.

According to data from Skew.com, after yet another series of prints, the value of all circulating USDT supply has risen to $6.7 billion, $2.2 billion higher than the approximately $4.5 billion market cap seen at the start of March.

Charles Edwards, a digital asset manager, remarked in January that “major changes in Tether’s market capitalization have led Bitcoin’s price over the last 1.5 years.”

Prior to the nearly 50 percent crash in November 2018 that saw BTC plunge from $6,000 to $3,150, the amount of Tether in circulation fell by hundreds of millions; also, prior to the majority of 2019’s crypto rally was the printing of hundreds of millions worth of USDT.

This quirky indicator suggests that the cryptocurrency market should continue to trend higher due to the influx of USDT demand.
Photo by Unsplash on Unsplash

Even After 80% Rally, Data Shows Bitcoin’s Bull Run Is Just Beginning was last modified: April 16th, 2020 by Nick Chong

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