Bitcoin rallied on Thursday to finally blitz past the $9,500 resistance level. Bitcoin is up by almost 30% year-to-date, according to blockchain analytics firm Skew. Such a stellar performance in Q1 has not been seen in the crypto markets in the last 7 years.
However, the prolonged bear market left many investors downcast, with most of them becoming accustomed to downswings in the near time but with hopes that they will be rewarded in the long-term. As the crypto market flashes green once again, such investors presume that the rally is merely a dead cat bounce and the bears will soon be back for a mauling.
But, these three key factors prove the bulls have won the day.
#1. Bitcoin Moved Above The Crucial 200-Day MA
Bitcoin has crossed the 200-day moving average on only three occasions since its birth: in March 2012, in October 2015 and in April 2019. Notably, all of these three occasions were followed by face-melting rallies that took the top cryptocurrency to new highs.
Fundstrat’s Thomas Lee recently observed that bitcoin crossed the 200-day MA on January 27. According to Lee, anytime bitcoin moves above this barrier, it surges 80% and “essentially [meaning bitcoin is] ‘re-entering’ [a] bull market.”
#2. Bitcoin Hash Rate Hits Fresh All-Time High
Amid the rising prices, the bitcoin network recently printed a new all-time high. A pseudonymous Twitter account named The Moon pointed out that bitcoin’s hash rate clocked up more than 123 quintillion hashes per second. According to him, this is an indication that the flagship crypto asset is “screaming for a huge bull run leading into the halving.”
Bitcoin miner reward halving is expected to take place on May 9, which is less than 100 days away. After this event, bitcoin’s block rewards will be slashed from 12.5 BTC to 6.25 BTC. Accordingly, this will lead to the asset becoming more scarce and valuable.
#3. A Steep Increase In The Number Of Active Bitcoin Addresses
Monitoring resource Glassnode compiled an analysis of the growing number of entities controlling active bitcoin addresses. According to Glassnode, this is a sign of continued bitcoin adoption.
Historically, the increase in bitcoin addresses has always preceded a huge rally. Case in point, bitcoin addresses saw an increase in October 2017 before the historic December bull market. Also, bitcoin’s surge to $13,796 in June last year was concurrent with an increase in the number of active addresses.
If history is anything to go by, bitcoin could be en route to experiencing a supercharged rally.