Bitcoin Bull Run: Is It Just Getting Started? Key Indicators Point North
Table of contents
Historical Support from the 50-Week Moving Average
A key indicator generating bullish sentiment is Bitcoin's interaction with its 50-week Moving Average (50-WMA). According to crypto trader Mags, this metric has historically served as a robust support level. Each time Bitcoin has touched this long-term average, it has consistently bounced back, signaling strong "BUY" opportunities. The only instance where this pattern broke, indicating a "SELL" signal, was in early 2022 when BTC failed to maintain its position above the 50-WMA. If this historical pattern holds, Bitcoin could soon surpass the $112,000 mark and aim for targets exceeding $130,000.
Institutional Accumulation from Dormant Wallets
Further reinforcing the bullish case is the significant on-chain activity observed by crypto analyst Maartunn. Recent data shows that over 19,400 BTC, valued at approximately $2.11 billion, have been transferred from dormant wallets—those untouched for three to seven years—directly into institutional-grade addresses. This movement suggests that large, sophisticated investors are actively accumulating Bitcoin during this period of price consolidation, interpreting current levels as opportune entry points. Such large-scale, long-term accumulation by institutions often precedes substantial market rallies.
Navigating Short-Term Selling Pressure
Despite these compelling long-term bullish signals, the market is not entirely without headwinds. CryptoQuant data reveals that the Cumulative Volume Delta (CVD) remains negative, indicating ongoing short-selling activity from some traders who are betting against an immediate price breakout. This short-term pressure suggests that while the foundational elements for a continued bull run are in place, the path forward might still involve periods of volatility as bears attempt to push prices lower. However, the confluence of historical technical support and strong institutional interest paints a largely positive picture for Bitcoin's journey ahead.