Prominent on-chain analysts believe that Bitcoin and crypto markets are preparing for a ‘full bull’ phase. The prediction comes after they noticed that leading technical indicators are signaling a classic bullish run for the market.
Market cyclist Cole Garner went on X (formerly Twitter) to share his thoughts on how he thinks Bitcoin and crypto markets look poised to achieve a complete bull run. Although BTC prices continue to stagnate, Garner is convinced that the current cycle is like any other due to Whale vs Fish accumulation.
‘Whales’ are large-scale investors, while ‘fishes’ are small investors.
Crypto Whales And Fish Accumulating More Bitcoin Than Selling
Linking to a study conducted by blockchain analytics firm Jarvis Labs, Garner pointed out that the accumulation pattern of whale wallets is yet to cease despite Bitcoin prices having a huge upside in June. It’s not just the whales that have been holding on to their BTC, fishes are also increasing Bitcoin exposure.
In a follow-up Tweet, Garner asserted that Whale accumulation trends are the “backbone” of a bull market. A similar analysis was made by Bitcoin technical analyst Crypto Con, who in a recent tweet claimed that Bitcoin whales are “complete diamond hands”.
Crypto Con explained that in the current cycle (2022-2023), selling was far less as whales decided to hold on to Bitcoin, which according to the analyst is “powerful for price” due to a similar pattern in the past that has resulted in a bull market.
The agency pointed out two cycles between 2013 and 2017 where a similar trend occurred. However, soon after, BTC price went under “huge suppression” as the key metric declined due to the Whales liquidating their positions for big margins.
According to the crypto analyst, Bitcoin’s last cycle was signified by “relentless” selling by the whales. But what makes the current cycle significant is that while retail investors sold their holdings during the bear market, “whales didn’t flinch”, tweeted Crypto Con.
Buying Spree In Asian Markets Significant To BTC And ETH Prices
Meanwhile, Garner noted a “potent alpha” metric that nobody mentions, which is when buyers dominate the Asian market session, there is a huge probability that Bitcoin (BTC) and Ether (ETH) prices go up. And Asia starts selling when the assets hit their local market high.
He even created an algorithm that tested results since 2011, indicating that the metric is reasonable to predict bullish cycles. He asked investors to be prepared for a coming surge in prices as “Asia is definitely buying right now”.
Bitcoin To Stablecoin Conversion Ratio Rises Before A Bull Run
Garner also reiterated the importance of Bitcoin to stablecoin conversion ratios on the Bitfinex crypto exchange. He explained that the ratio “blows up” a few weeks before every major Bitcoin bull run.
He argued that whales on Bitfinex are important because they drive short-to-medium-term action “more than any other entity in crypto” and is a leading indicator of BTC prices.
Another indicator pointed out by Garner was the Bitcoin to stablecoin market cap ratio, which when large signifies a bullish sentiment. He explained that stablecoin ratios are “crushed up against” their log trendline, which according to the analyst is one of the most important resistance levels in the crypto market. Garner claims that the log trendline has to break for the market to go “full bull”, which he says “could totally happen”.
There is no definite date when the bullish BTC price breakout could occur, but Garner says it is less likely to happen until the third quarter of this year. The analyst also warned of the “summer seasonality” that could invalidate his bull run thesis. He says that Bitcoin would need to close below its 200-week simple moving average (SMA) on a weekly basis to stop the bull cycle from happening.
At the time of writing, Bitcoin (BTC) is trading at $29,032.