CRYPTO: THIS NEVER HAPPENED BEFORE | CoinReVision (2024)

The Unusual Momentum of Bitcoin in a Bear Market

In this market update video, we will delve into the fascinating and exceptional momentum that Bitcoin is experiencing in its current bear market. Despite the price action indicating a bear market or consolidation, there are surprising indicators that suggest a potential bull market territory.

Price Analysis and Support Levels

Initially, let’s explore the price movement of BTC. It is essential to note that despite the profit taking and sell-offs that occurred, driving the price down to the 25 support level, this level has transformed into a significant support level. The break of the previous sell-off is a positive indication for an uptrend.

Furthermore, we can observe key resistance levels at around 28,000.500. The recent price action touched this resistance level before experiencing a rejection, which is a natural occurrence in such market conditions. For a sustained uptrend, consolidation and multiple tests of resistance levels are beneficial to determine the confidence of short-term traders in driving the price higher.

In terms of drawdowns, the 25 support level has proven to be robust, showcasing its strength as a critical support level. Therefore, trading above this level is likely to be anticipated in the near future.

Address Momentum: A Unique Phenomenon

Now, let’s shift our focus to the intriguing aspect of address momentum. Address momentum refers to the growth and activity of new addresses in the Bitcoin network. It provides valuable insights into the adoption and usage of Bitcoin, which ultimately impacts its price trajectory.

During bull markets, we typically witness an increase in address momentum as more people enter the market, indicating growing interest and higher prices. However, what makes the current bear market exceptional is the unprecedented address momentum we are observing. This level of address growth has never been seen before during a recovery from a bear market.

This unique occurrence indicates a paradigm shift in Bitcoin’s adoption and usage, regardless of the challenging economic conditions globally. The fundamental value and attractiveness of Bitcoin are being recognized by individuals, and the network is attracting more participants over time. This trend of increased adoption fuels confidence in Bitcoin’s long-term prospects and ultimately influences its price trajectory.

Ethereum’s Address Momentum

While not growing at the same pace as Bitcoin, Ethereum also exhibits interesting address momentum. It is important to note that a significant portion of the new address momentum on Ethereum is happening on Layer Two solutions. These layer twos are experiencing substantial growth, contributing to the overall expansion of the Ethereum ecosystem.

It’s worth mentioning that comparing the address momentum between Layer One (L1) Ethereum and Bitcoin might not provide an accurate assessment due to the differences in scaling approaches. Ethereum’s scaling through Layer Two solutions adds complexity to the analysis. Nonetheless, the increased address momentum on Ethereum underscores the growing interest and demand for this network.

An Unprecedented Phenomenon: Fundamentals Over Price

It is crucial to emphasize that as an investor, focusing solely on price fluctuations is not sufficient. Instead, understanding the fundamental growth of Bitcoin is paramount. Bitcoin’s value lies not in speculative hope for price appreciation, but in its fundamental growth as a network.

The fixed supply nature of Bitcoin, combined with decreasing supply due to the upcoming halving, further highlights the importance of increasing demand. More people desiring and actively using Bitcoin over time will inevitably impact its price positively. There is no other calculation or factor involved.

The introduction of this unusually high address momentum during a bear market or recovery illustrates the strength and potential of Bitcoin as a long-term investment. The network’s growth, even during challenging times, solidifies its position as a fundamentally strong asset.

ETFs and the Growth of Bitcoin

Introducing Bitcoin Exchange-Traded Funds (ETFs) has been a topic of interest in the crypto market. While some believe that ETFs will significantly impact the price of Bitcoin, it is essential to distinguish between the bullishness of ETFs themselves and the underlying assets.

ETFs are valuable for long-term passive investment strategies that span over several years. The market has already anticipated the introduction of Bitcoin ETFs, and their actual launch might not have the same impact as expected. Consequently, ETFs are not the primary determinant of Bitcoin’s success.

Thousands of ETFs exist in the market, tracking various products, many of which underperform or diminish in value. Therefore, it is crucial to focus on the growth of the underlying assets rather than the introduction of ETFs. The continuous growth of Bitcoin as a network remains the most important factor for investors.

Conclusion: Bitcoin’s Resilience and Strength

In conclusion, Bitcoin’s current momentum in a bear market is undeniably fascinating. The unprecedented growth of new addresses during this period underscores the network’s fundamental strength, which has never been observed before. The increasing adoption and usage of Bitcoin, even in challenging economic circ*mstances, bode well for its long-term trajectory.

While macro factors may influence short-term price movements, Bitcoin’s resilience and the potential absence of a significant financial crash suggest a robust outlook. The focus should remain on the network’s growth and increasing adoption rather than short-term price fluctuations.

As investors, it is crucial to evaluate the fundamentals of Bitcoin and its potential for long-term growth, rather than solely relying on price predictions and external events such as the introduction of ETFs. Ultimately, Bitcoin’s unique value proposition as a decentralized and limited-supply asset drives its long-term prospects, regardless of short-term market conditions.