If we review the way in which Bitcoin has evolved in recent weeks, we will see that its price range has oscillated between US $ 10,000 and US $ 11,000. This has sparked all kinds of debate and controversy among analysts who doubt the uptrend of BTC and those who believe that it is continuing. What indicators can you use to determine your own thinking? Miners’ activity could tell us if Bitcoin could make a takeoff or not.
The current price resistances of the leading cryptocurrency seem to indicate a possible recovery in the medium term. However, there are some signs on the blockchain that seem to suggest that BTC has room to continue growing.
One of the most curious is one that was observed in 2017, when Bitcoin achieved an interesting “take-off”. Likewise, fundamental analysts seem optimistic about a possible bull run to come.
2017 indicator on the rise of BTC seems to have appeared again
Some signals that serve to determine a possible market trend is to analyze the level of variation in the price of BTC, resistance levels and activity of the whales in a given time. However, it is also useful to analyze the mining ecosystem.
In that regard, Ki Young Ju, CEO of CryptoQuant, noted that Bitcoin is likely on the verge of a bull run. This is because according to the entrepreneur, the Bitcoin miners ecosystem is showing clear bullish signals.
For his analysis, Young used the Miner Position Index (MPI) as the main indicator. “If the $ BTC miners keep pushing the price, the next bull run should start soon. MPI has a very high hit rate in predicting the bull / bear market when macro factors, such as the stock market, are not significant«He explained.
The expert’s conclusion is that, if the situation is the same as it was then, we could be on the verge of witnessing another unprecedented rally for Bitcoin. Even to exceed its historical maximum.
Are there signs that support this conclusion? Will miners get Bitcoin off the ground?
Although Bitcoin is a cryptocurrency known for its volatility, going blind by betting on the unknown just for an indicator is not the smart thing to do. Therefore, we must look for signs that complement this initial indication.
Since the beginning of 2020, society has been discussing what will happen to the global economy. In the crypto world, in turn, the debate revolves around whether or not BTC will finally be chosen as a reserve asset.. However, the correlation that this asset has maintained with the financial markets has made many doubt.
But not Raoul Pal, CEO of Real Vision. Pal recently stated that “there is ZERO tolerance for deflation, so people will do ANYTHING to stop it. That’s good for the two hardest assets: gold and Bitcoin.”.
According to him, what the world’s central banks will get with their financial stimuli will be a fiduciary devaluation. It is at that moment where Bitcoin could play an interesting role.
Again, many experts keep in mind what happened in March with the well-known “black Thursday” and do not take the rallies of Bitcoin for granted. Considering that this is by far one of the most uncertain contexts globally experienced in this century, NOTHING can be taken for granted.
Thus, From CryptoTrend we recommend not to echo what one or two people can affirm. More important than that is educating ourselves; take the advice of experts as a guide, and not as an invariable dogma.
Miners’ activity has always been an important part of what happens in the Bitcoin market, but it is not enough to affirm a takeoff. Comparing it with the situation of 2017 is possible, but remember that the current conditions are not the same as back then.