Bitcoin has hit a low in the last few weeks, entering a trading range between $ 10,000 and $ 11,000.
On a macro basis, not all analysts are convinced that BTC is in a full-blown bull market.
There are a number of resistance levels above the current Bitcoin price that could mark highs of a medium-term rebound.
Still, there are crucial on-chain indicators that suggest that the cryptocurrency has scope for upward movement.
One such indicator, formed in 2017 before a 1,500% upward move, has returned.
There are also fundamental trends that suggest the ball is firmly in the bulls’ field right now.
Critical on-chain Bitcoin indicator shows: A strong rally is coming
Ki Young Ju, CEO of CryptoQuant, believes Bitcoin is likely on the verge of a full-blown bull run as the mining ecosystem flashes a number of bull signals.
On September 24th, he shared the chart below and commented that the Bitcoin miners are expecting an upcoming bull run. The same signal appeared in early 2017 – before a parabolic surge.
“If the $ BTC miners are still setting the price, the next bull run should begin soon. The MPI (Miner Position Index) has a very high hit rate in predicting the bull / bear market when the macro factors such as the stock market are not significant. ”
Should history repeat itself, Bitcoin is on the verge of a parabolic rally that should bring the coin above its all-time high of $ 20,000.
Graphic of BTC’s macro price action with an index analysis of the miner’s position by crypto-on-chain analyst and CryptoQuant CEO Ki Young Ju.
Basics are better than ever
Aside from pure on-chain data, analysts believe that the fundamentals of Bitcoin are stronger than ever. That confirms the expectation that the cryptocurrency market will see a strong upward move.
Raoul Pal, CEO of Real Vision, had this to say about BTC’s fundamentals:
“Most people don’t understand the latter, but to put it simply, Powell has shown that there is ZERO tolerance to deflation, so they’ll do ANYTHING to stop it, and that’s good for the two toughest investments – gold and Bitcoin. Powell WANTS inflation. I don’t think he will get any real demand push inflation, but he will get fiat devaluation, in conjunction with the other central banks all on the same mission. ”
Others like Pal join this optimistic mood. They believe that given the massive amount of monetary policy and stimulus, along with other geopolitical and monetary trends, BTC is poised to move higher.