Bitcoin seems to be heading in a clear direction. After months of heavy losses, the price has risen massively again in recent days and may have left the correction behind. In this article, we present 3 reasons why Bitcoin is now transitioning back into a bull market. 

As bitcoin becomes more tied to stock markets through products like bitcoin ETFs, the performance of financial markets has become increasingly important to macro crypto market movements. These financial markets have been showing good numbers again in recent weeks.

The announcements of interest rate hikes by the US Federal Reserve have caused the share prices of the large tech companies to suffer more and more recently. But lately, the figures for the technology sector are looking much better. This also has a positive effect on cryptocurrencies and could fuel the Bitcoin bull market.

In 2021, more and more institutional investors invested in Bitcoin, fueling the bull market. Investors' interest in buying is becoming increasingly important as prices develop. Luckily, the major institutional investors have been showing renewed interest in the cryptocurrency market over the past few days.

Now is an ideal point to get into Bitcoin cheaply. Buy bitcoin and other cryptocurrencies on crypto exchanges  Binance ,  Coinbase ,  Kraken  and  Bitfinex !

Before that, the big bitcoin addresses, the so-called whales, have been busy accumulating bitcoins. They obviously expected a new Bitcoin bull market. The institutions are looking for more risk again. A prominent example is Microstrategy, which has again bought Bitcoin in large quantities.

Many speculative investors had bet on a further drop in bitcoin on the foreign exchange market. Now they had to give up their positions and buy bitcoins again in order not to miss anything in the Bitcoin bull market. 

In the past few months, these speculative investors were primarily responsible for the sharp drop in prices, while the hodlers largely held their positions and continued to buy. This shows that the fundamentals for the Bitcoin bull market remain very strong.

You can now buy Bitcoin relatively cheaply on the crypto exchanges  Binance ,  Coinbase ,  Kraken  and  Bitfinex.

The past few weeks have seen double-digit losses on the crypto market. This was mainly due to short-term speculators, who sold their positions in Bitcoin due to the threat of interest rate increases by the American central bank. But the days of bears seem to be over. The following 3 on-chain indicators suggest that Bitcoin could soon transition back into a bull market.

If you feel like you need guidance when tackling the crypto market, you need to check out our premium area. You’ll always be up-to-date with everything happening in the crypto market. Additionally, you will receive trading ideas and professional trading support. You will also receive information about the latest crypto trends at an early stage! If you want to read more about our Premium Area, click here.

We already mentioned several times in the past few days that Bitcoin has been heavily "oversold" in recent weeks. One indicator of this is the Relative Strength Index (RSI), which recently fell to its lowest level since March 2020. This indicates that bitcoin has been heavily sold relative to its fundamentals.

Another indicator of this is the so-called "entity-adjusted dormancy flow". It indicates the relationship between market capitalization and the behavior of spending on the blockchain. According to this reading, the bitcoin is as "oversold" as only 3 times before and could soon turn into a bull market again.

In order to be able to predict the course in the next few weeks, it is also worth taking a look at the buying behavior of the Bitcoin whales as a point of reference. In 2021, these have gained extreme influence on the Bitcoin course. Increasing buying behavior by whales could predict a Bitcoin bull market.

Now is an ideal point to get in cheaply. Buy bitcoin on crypto exchanges  Binance ,  Coinbase ,  Kraken  and  Bitfinex !

Since mid-January, we have seen a clear decoupling of the behavior of the whales over the course of the Bitcoin price. The whales seem to be investing more in Bitcoin again and probably see a bull market on the horizon. As a retail investor, you should take a close look at the behavior of whales.

Since November, we have seen multiple price crashes and an overall bearish trend in Bitcoin price. According to the data, these sales were very strongly driven by so-called "marginal macro sellers". In the financial world, these tend to be short-term traders who primarily react to external “macro events”. The new virus variant and looming interest rate hike were such events that led to massive selling.

However, long-term investors have continued to hold their bitcoins and are now slowly adding to them, according to on-chain. Since December, hodlers have been using the low prices to accumulate Bitcoin cheaply. This should also be a clear sign of an upcoming Bitcoin bull market. 

With the above-mentioned information, we can clearly see why we might see Bitcoin up in the next few days. After an extended bear market, we currently witnessed many green days. It is true that BTC prices did not fully recover yet, but the road to the all-time high of 69K is not over. The current price is lingering around an important area of $38,000. The current consolidation around that price is a strong indicator that the coming move will be strong.

This is especially apparent in figure 1, as we can see the second green weekly candle recovering from the low of the previous crash.

You can purchase bitcoin on crypto exchanges  Binance ,  Coinbase ,  Kraken ,  and  Bitfinex  .

Bitcoin vs Ethereum is a never-ending battle. After the strong price rally, both cryptos are displaying tremendous growth. At the time of writing this, the Bitcoin price is sitting at $63,086.99 and on the other hand, the Ethereum price is sitting at $4,177.14. But the market is apparently only concentrating on further highs. But which cryptocurrency could you make the most profits with? Bitcoin vs Ethereum? Let's take a look at it in more detail.

Bitcoin breached its all-time high a few days ago. The biggest cryptocurrency surged over $ 67,000, breaking the $ 64,800 mark placed 6 months ago. It seems that Bitcoin is continuing its upward trend after dropping below $ 30,000 in the month of August. 

Ethereum also immediately reached a new all-time high of $4,361 quickly after Bitcoin. But Ethereum also declined again afterward and dropped towards $ 4,000. But, similar to Bitcoin, the Ethereum price has almost increased tremendously in the last 3 months.

For Bitcoin and Ethereum, the price targets are clear. Bitcoin could touch $100,000 in the next few weeks or months, which would be a remarkably significant breakthrough for the cryptocurrency. The on-chain data from the Bitcoin blockchain has been hinting a growth in this direction for weeks.

Ethereum can also touch the $10,000 marks in the next few weeks. The only condition here is that the Ethereum price would have to rise more than double in order to accomplish this price target. The other thing here is that if Bitcoin goes to $100,000 then Ethereum too could very promptly touch $ 10,000.

Right now, the investment in both Bitcoin and Ethereum could be lucrative in the next few weeks and months. The only thing to remember here is that the investment in these coins should be a long-term investment. The bull market is in full motion and could grow as it did at the end of 2017 when we noticed big improvements. Bitcoin's monthly ROI (Return On Investment) is almost +47% while its 3 months ROI is almost +60%. The reason the long-term investment is crucial is that the yearly ROI is almost +380% and this is huge. 

Bitcoin's ROI by year:

• 2020 +303.28%
• 2019 +86.69%
• 2018 -72.46%
• 2017 +1294.85%
• 2016 +123.13%
• 2015 +36.81%
• 2014 -57.35%
• 2013 +5394.20%
• 2012 +156.47%

On the other hand, in the case of Ethereum, the monthly ROI (Return On Investment) is almost +41% while its 3 months ROI is almost +80%. The reason the long-term investment is crucial is that the yearly ROI is almost +919% and this is extremely huge and better than BTC.

Ethereum's ROI by year:

• 2020 +465%
• 2019 -8%
• 2018 -82%
• 2017 +8985.15%
• 2016 +756%
• 2015 -68%