The price of Bitcoin (BTC) has pulled back substantially since its yearly high at $14,149 a few days ago. Yet, there are five signs that the real rally is only just starting.
Rising “HODLing” activity, record-high fundamentals, low retail interest, higher time frame breakout and technical indicators suggest that a bigger bull run may be brewing.
Higher time frame breakout
Bitcoin has dropped over 6% from its local peak at over $14,000, a level it hasn’t tested since 2017.
But on the weekly and monthly time frames, it recorded a clear breakout. It saw the first weekly and monthly candle close above $13,000 for the first time in nearly three years.
As Cointelegraph previously reported, the monthly chart shows Bitcoin is far above key moving averages. Technically, that means the momentum is still intact but a healthy pullback could be beneficial.
Google Trends activity and social volume are still low
During the peak of a bull run, the Google Trends activity for the keyword “Bitcoin” skyrockets as retail demand floods in. When the market sentiment becomes euphoric, whales tend to take profit, causing the market to decline.
In the past several months, despite the strong rally of Bitcoin, Google Trends activity has been low. This indicates that not a lot of retail investors are searching about the dominant cryptocurrency on Google.
Additionally, according to data from The Tie, the monthly tweet volume of Bitcoin in October only rose 7.8%. The lack of retail interest despite the price being at multi-year highs indicates BTC might be in an early bull market phase.
Technical indicators show rally is not overheated
According to the Mayer Multiple, historical Bitcoin price cycles show the current BTC rally is not overheated.
The Mayer Multiple analyzes the price of Bitcoin based on its 200-day moving average, which evaluates its long-term price trend. If the multiple…