Bitcoin enthusiasts are anticipating a resurgence in BTC prices, drawing parallels to the late 2020 bullish trend, as cash inflows signal a potential comeback. The hesitancy among Bitcoin traders appears to be waning, with BTC’s strength pushing the market back to the $43,000 mark.
Fresh indications of a bull run are emerging as BTC registers a 7% daily gain, according to data from TronWeekly Markets Pro and TradingView. On-chain metrics resetting suggests a continuation of the upside momentum.
Analysts argue that BTC needed a cooldown after reaching $44,000 earlier this month. Conditions are seen as improving, especially after a dip close to $40,000. Philip Swift, the creator of Look Into Bitcoin, highlighted a surge in profit-taking as BTC/USD reached its latest 19-month highs.
Bitcoin’s Selling Activity Peaks
The value days destroyed (VDD) multiple metric, reflecting Bitcoin selling activity, hit its highest level since May 2021 on December 11.Recent selling activity is attributed to short-term holders (STHs), the more speculative segment of the Bitcoin investor base.
Meanwhile, there’s optimism about the potential for BTC to breach key resistance levels near $50,000. Analyst Matthew Hyland points to the relative strength index (RSI) on daily timeframes, noting a bullish divergence with price.
Equally optimistic is the well-known social media commentator Ali, who observed a substantial influx into both BTC and the leading altcoin Ether (ETH), with ETH currently trading at $2,302. He pointed out that these conditions mirror those seen in late 2020 when BTC/USD initially surpassed $20,000, entering a phase of price discovery.
“In the latest round of optimistic BTC price predictions, fellow commentator BitQuant emphasized, ‘We have a plan. We’re aware of our destination, the purpose behind our journey, and the timing of our actions. The rest is simply background noise.'”
“Bitcoin should overcome the $42K-$45K channel by the end of the coming week, and then there are no more strong resistances until $63K.”