Bitcoin Price Rally: Bull Trap or New Bull Run?

• The Bitcoin price is up 40% YTD and has recaptured the $23,000 level, but investors are unsure of the sustainability of the rally.
• Glassnode examines whether the rally is a bull trap or if a new bull run is in the horizon.
• On-chain data suggests the current bear market is similar to the 2018-2019 bear market in terms of duration and investor behavior patterns.

Bitcoin, the world’s leading cryptocurrency, has seen an impressive rally of 40% year-to-date (YTD), pushing the price back up to the $23,000 level. Despite this significant increase, many investors are still uncertain about the sustainability of the recent price rally as ongoing concerns around DCG and Grayscale, as well as macroeconomic uncertainties, continue to loom. This has led to many investors looking to capitalize on the current prices and gain some liquidity, especially after the long and painful bear market in 2022.

In this regard, Glassnode, a renowned on-chain analysis firm, has released a report exploring whether Bitcoin’s current price spike is a bull trap or if indeed a new bull run is on the horizon. The report takes a look at two indicators, Investor Price and Delta Price, which have been used to measure price movements in the past. According to the report, Bitcoin prices stayed within the confines of the Investor-Delta price band for a similar amount of time (78 days) in both the 2018-2019 bear market and the current bear market. This suggests an equivalency in durational pain across the two bear markets.

In addition to the duration component of the bottoming phase, Glassnode also points to the compression of the investor delta price range, which indicates that investors have become more risk-averse and have chosen to take profits or exit positions when prices have gone up. This suggests that investors are more cautious with their Bitcoin holdings, indicating that the current rally may not be as strong as one would expect.

Overall, Glassnode’s report suggests that while Bitcoin’s recent bounce above the price it has last seen before the FTX collapse is encouraging, it is still too early to tell if the rally will be sustained or if it is a bull trap. With higher prices, investors may be motivated to exit positions and gain liquidity, while also staying cautious of the potential risks.

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Less Than 1% of the Population Owns Bitcoin – Why?

• Out of the 8 billion living on the planet, only 43 million people own Bitcoin.
• This amount is less than 1% of the population, despite the success of cryptocurrency.
• A possible cause of this is confusion between creating a cryptocurrency wallet and owning certain amounts of cryptocurrency.

The world of cryptocurrency has seen tremendous growth and success in recent years, yet only 43 million people on the planet own Bitcoin. Out of the 8 billion people living on the planet, this means that only 0.5% of the population holds ownership of Bitcoin, despite its success. So what is causing this low rate of ownership?

One possible reason is confusion over the concepts of ‘ownership’ and ‘creation’ when it comes to cryptocurrency. Before anyone can have access to any form of cryptocurrency online, a user must first create their own online wallet for the specific cryptocurrency they want to invest with. This is the same for Bitcoin, as specific blockchain wallets are created for BTC. Data from shows that as of January 2022, a total of 85 million BTC wallets that were unique from each other were created and recorded.

However, unique ownership of the cryptocurrency itself (meaning that they have at least 1 or more BTC in their wallet) is only 43 million worldwide. This means that while there are many people who have created wallets in order to access Bitcoin and other cryptocurrencies, there are only a select few who are actually investing in them. This could be due to confusion between creating wallets and owning actual Bitcoin, or it could be due to other factors.

For example, some people may be put off by the perceived risk of cryptocurrency and the volatility of the market. Others may be skeptical of the technology and unsure about how it works. And there are those who may not be able to afford to invest in Bitcoin, either due to financial constraints or lack of knowledge.

Whatever the reason, it is clear that only a very small percentage of the global population currently owns Bitcoin. Despite its growing popularity and success, the majority of people are still not taking part in the cryptocurrency revolution. It remains to be seen whether this will change in the future, as it is likely that more people will become aware of the potential benefits of cryptocurrency and start to invest in it as a result.

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Bitcoin Struggles to Stay Above $17,000 After FOMC Minutes

• The recent Federal Open Market Committee (FOMC) minutes have caused Bitcoin to dip below the $16,900 mark.
• Bitcoin is currently consolidating above the $16,600 price mark.
• The technical outlook of the asset has reflected a fall in accumulation, but indicators are still positive about the Bitcoin price over the upcoming trading sessions.

The Bitcoin price has been struggling to stay above the $17,000 mark for multiple weeks now, and has recently dipped below the $16,900 mark. This downward move on the Bitcoin chart can be attributed to the recent Federal Open Market Committee (FOMC) minutes, which revealed that the Federal Reserve System will continue to maintain higher interest rates for the foreseeable future. This news has evidently sent ripples through the cryptocurrency market, causing participants to react negatively.

However, despite the recent dip in Bitcoin’s price, the asset is still holding steady above the $16,600 price mark. At the moment, Bitcoin is consolidating and major altcoins are following a similar price trajectory. Over the last 24 hours, BTC has slipped 0.6%. The current Bitcoin price is trading at a 76% discount from its all-time high of 2021. The market capitalization of Bitcoin has also decreased slightly, indicating that sellers outnumbered buyers at press time.

Analyzing the one-day chart of Bitcoin, it can be seen that the coin is currently trading at $16,700. The coin recently lost the $16,800 support level, however, this is only short-term as BTC will soon initiate recovery on the chart. The technical outlook of the asset has reflected a fall in accumulation, but indicators are still positive about the Bitcoin price over the upcoming trading sessions. This means that with a slight push from buyers, BTC could propel itself above the $16,800 support level.

Overall, the current market conditions suggest that the Bitcoin price is likely to make a recovery over the next trading sessions. It is important to note, however, that the cryptocurrency market is highly volatile and the prices can change drastically at any given time. Therefore, investors should remain cautious and only invest in Bitcoin after doing their own research and due diligence.

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BONK Price Plunges 50%, Investors Fleeing Crypto Amid Uncertain Future

• BONK, a meme coin on the Solana ecosystem, has seen its price rapidly decline, falling over 50% in the last 24 hours.
• The coin had seen massive gains in the 10-day period prior, recording a more than 4,000% return rate and reaching a market cap of over $200 million.
• With the downturn, BONK could be seeing the start of the end just like Shiba Inu had done in October 2021, making it wise to get out of the crypto.

BONK, a meme coin on the Solana ecosystem, has been the talk of the town since the start of the new year. The coin had risen from obscurity to the largest meme coin on the Solana ecosystem in less than two weeks, recording massive gains for investors during this time. However, the hype seems to have reached its peak and BONK has begun a dreaded downward correction.

In the last day, the price of BONK has rapidly declined, losing more than 50% of its value during this time. It hit its all-time high price of $0.0000049 on Thursday when the hype was at its peak but since then, has fallen to $0.000002. This was after recording a more than 4,000% return rate in a 10-day period and reaching a market cap of over $200 million.

The sell-offs have dragged the price of BONK back down, causing the price surge recorded in Solana over the last week to slow down significantly. BONK has recorded over 53% losses in the past day, while SOL has seen small gains of 0.17%.

With a downturn such as this, BONK could be seeing the start of the end just like Shiba Inu had done in October 2021. As such, it could be wise for investors to get out of the crypto and look for other more stable investments. Many investors have already begun selling off their tokens, leading to a further drop in the price.

The future of BONK remains uncertain at this point as it is a digital currency driven by purely social sentiment. It is possible that the coin will continue to decline or that it will once again experience a surge in value. It is important for investors to be aware of the risks and make sure to stay informed of the latest developments in the crypto space.

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