Four reasons why the Bitcoin bull run is still going on

While $50,000 does not seem to be a strong support level for Bitcoin yet, there are some reasons that suggest that the bull run for Bitcoin is still ongoing.

1. No one wants to sell Bitcoin

At the current Bitcoin price, most Bitcoin holders in the market do not plan to sell their Bitcoins. According to Cointelegraph, miners are not interested in the price of $50,000 and will not sell their Bitcoins.

At the same time, according to data from on-chain analysis company Glassnode, the amount of Bitcoin held by centralized exchanges has fallen by about 20% in 12 months.

This suggests that investors are accumulating Bitcoin and moving their holdings from exchanges to cold wallets, creating a supply squeeze.

On-chain analyst Willy Woo said the only selling pressure came from institutional players as they approached their first-quarter earnings reports, but this was far from a bearish sign.

Woo pointed out that big whales have been selling since last month, but small whales holding 10-100 bitcoins have continued to increase.

He also analyzed from the dormant chart of Bitcoin that "the Bitcoin sold this time is all 'new whales', that is, the Bitcoin sold is the Bitcoin that was just bought not long ago." This confirms his point that the only selling pressure comes from institutions that have recently joined the Bitcoin buying craze but are about to report their first quarter earnings.

2. Further economic stimulus policies from the US government

Last Saturday, the U.S. Senate voted to pass a $1.9 trillion economic relief plan, which will issue a $1,400 check to every citizen and resident who meets the criteria, which is undoubtedly a direct incentive for the Bitcoin market.

According to data from Bitcoin Stimulus, an online monitoring platform on Twitter, if investors used the $1,200 relief funds issued in the first round and the $600 relief funds issued in the second round to invest in Bitcoin, as Bitcoin appreciated, their $1,800 would have become $10,250.

In other words, $1,200 could buy 0.18 bitcoins at the time, but now $1,400 can only buy 0.028 bitcoins. So from this point of view, although the US dollar index is rising, the purchasing power of the US dollar is declining.

Veteran trader Peter Brandt warned in a tweet on Sunday: “Bitcoin, Real Estate, US Stocks and Commodities markets all continue to move higher when expressed in USD as fiat currency because the purchasing power of the USD has decreased.”

3. Bitcoin’s weekly closing price last week reached its second highest level in history

Over the weekend, Bitcoin once again returned above the $50,000 mark, and at the close of Sunday, it reached its second-highest closing price in Bitcoin's history.

Based on this, Rafael Schultze-Kraft, co-founder and CTO of on-chain analysis company Glassnode, said that Bitcoin will receive strong support at $46,600. He tweeted on Sunday: "We currently have a wall of 1.2 million on-chain transactions, which gives Bitcoin strong support between $46,600 and $48,600."

Michaël van de Poppe, a market analyst at Cointelegraph, also said: “Now is a good time to add to your position.”

4. Crypto Fear and Greed Index Recovers

After last week’s Crypto Fear and Greed Index reading “Fear,” this week it’s back to “Extreme Greed.”

Data from the Network Value of Transactions (NVT) from on-chain analytics firm Glassnode shows that trading volume is correlated with recent price increases.

Glassnode co-founders Yann Allemann and Jan Happel tweeted on Saturday: “What defines a healthy rise in the price of Bitcoin? One of them is on-chain transaction volume! If the price rises too quickly without enough blockchain activity, the rise is usually unsustainable.”

However, through data observation, the value of Bitcoin's network transactions continues to rise. Yann Allemann and Jan Happel said: "NVT's trend looks very good." (Bitpush)