Bitcoin began the year 2022 trading sideways. BTC moved between a high of $47,875 and a low of $40,233 in the first week of the year.
The performance has been criticized as a poor follow-up to the market’s November and December price movements. During these times, Bitcoin reached a high of approximately $69,000 and maintained upward momentum.
👀 Bitcoin’s Bullish Recovery Rally Is Near
The fundamentals show that on-chain activity is minimal. Institutional funds and long-term holders are currently the top market players, according to Glassnode’s market assessment. Retail traders and market participants who previously entered the market in response to a price hike have exited the sector.
A new pattern arose throughout this time period. In 2016/2017, the bull market sprung into life as a flood of new organizations entered the market, eventually ending in a maximum hype cycle. In March 2020, the market proceeded in the same manner and reached a peak in February of last year.
Glassnode has named this emerging channel a “bear market growth channel.”
Meanwhile, new organizations continue to sprout up. Despite the slow rate at which this is occurring, it is important to note that even during unfavorable moments, new people continue to enter the Bitcoin market. According to Glassnode’s analysis, the bull market is likely to leap off of that trend.
Bitcoin likewise had an explosion of on-chain activity in 2019, but lacked the momentum to launch a full-fledged bull market. Between August and October, the similar pattern was observed. According to Glassnode, Bitcoin is currently imitating that trend.
The point here is that while it does not appear to be a bull market, it is also beginning to resemble 2019, where potentially bitcoin’s bullish recovery rally is near. If it can gain a little more momentum, it may be able to truly change the tides. However, it does require a continuation of momentum and an influx of newcomers.