Bitcoin Predicted to Begin 2024 with Bull Run: AMBCrypto Study
Bitcoin in 2024: Are We in for a Bull Rally?
The possibility of Bitcoin starting the year 2024 with a bull run is not too far-fetched, according to an analysis by AMBCrypto.
Bitcoin Open Interest Hits All-Time High
On November 27, Bitcoin’s open interest reached an all-time high. Although BTC has dropped by 1.2% in the past week, the metrics were mostly bullish. Over the past 30 days, Bitcoin experienced a bull run, with the price increasing by 9% during this period. However, the cryptocurrency’s lucky streak turned around when BTC’s movement went sideways in the past week. According to CoinMarketCap, BTC dropped by over 1.2% in the last seven days. At the time of publication, it was trading at $36,897.06 and had a market capitalization of over $721 billion.
What Bitcoin’s Metrics Suggest
Investors should not lose hope, however, as AMBCrypto has observed that Bitcoin has been active in the meantime. Notably, CryptoCon pointed out in a tweet that BTC has reached the 3.5 Advance/Decline Ratio (ADR) level for the first time in this cycle. The Advance-Decline Ratio (ADR) is a popular market indicator used in technical analysis. It compares the number of stocks that close higher with the number of stocks that close lower than the previous day. Historically, reaching these ADR levels has always initiated a bull rally in Bitcoin. It was interesting to learn that Bitcoin’s ADR reached 3.5 while the open interest hit an all-time high. High open interest usually suggests higher liquidity of an asset. This means there is less discrepancy between an asset’s asking price and the price another trader is willing to pay.
Is BTC Actually Gearing Up for a Rally?
AMBCrypto took a closer look at Bitcoin’s on-chain metrics to better understand whether the coin is gearing up for another bull rally. Our analysis of CryptoQuant’s data revealed that BTC’s exchange reserves are decreasing, which means the coin is not under selling pressure at the time of press. The Binary CDD of the king coin was also green, suggesting that long-term holders have not made many moves in the past seven days. Thus, the LTHs were ready to hold their assets. However, BTC’s active addresses and transactions decreased, indicating a possible decline in daily trading – a concerning sign.
Source: AMBCrypto, CoinMarketCap, CryptoQuant
Advertising transparency