After 15 months of dominant Berish trends, key Bitcoin metrics and technical analysis of the market suggest that the Bull Run is taking charge. After 442 days of crypto winter, the technical analysis of key metrics along with the recent price rally where the majority of the altcoins gained in double digits has brought certain confidence in the market.
The technical analysis called Ichimoku Cloud looks into a number of factors including support and resistance levels. The analysis report suggests that Bitcoin was finally able to break its key resistance level of $4,200 to break into $5k price bracket after 15 months.
Analysts say that the recent surge was triggered by a number of contracts worth $500 million being squeezed on exchanges like BitMEX. Another theory suggests that the prices were triggered after an anonymous whale pumped Bitcoin on the market and it triggered several trading bots to execute trades worth of $100 million.
The market is also bullish because the surge was really quick and there hasn’t been much of resistance after cryptocurrencies broke their key resistance going on for 15 months.
The Third Bubble Cycle May Arrive Before the Next Full-Fledged Bull Run
It’s quite common for the crypto market to experience a market pullback after a price surge especially if the gains are more than 10%. Now many analysts believe that the recent surge in prices can also initiate a bubble cycle which has been observed previously on two occasions, both right before a massive bull run.
One bubble was observed in 2011 and the next right before 2017 price peak. On both the previous occasions the bubble was followed by a massive price rally taking the prices up to 10 folds.
The Market Sentiments Are Changing
Another indicator of the Bull run being just around the corner is the next Bitcoin halving. Historically the Bitcoin prices have jumped significantly a year before the halving of the Block Rewards. With the next halving scheduled to take place in May 2020.
All these factors combined, analysts predict that the next bull run might arrive next month, and the next key resistance for Bitcoin stands at $6,000. If Bitcoin can get past that, analysts say its prices might peak in accordance with 2017 peak price.