The end of the Bitcoin bear market could be near as the bulls gather more pace, but don’t rule out a market correction.
Bitcoin has posted the strongest quarterly returns since its November 2021 all-time high. Furthermore, BTC has gained more than 80% since the beginning of the year, making it the best-performing asset of 2023 so far.
Comparatively, gold has gained just 9% in the same period, and the tech-heavy NASDAQ 100 has managed around 20% since January 1. Additionally, the S&P 500 has managed just an 8.5% gain since the beginning of the year.
On April 17, on-chain analytics provider Glassnode confirmed Bitcoin’s performance stating:
“The strong market performance in 2023 is a stark contrast to 2022, and suggests a favorable regime shift is underway.”
Bitcoin Bulls Back in Play?
Is the #Bitcoin bear market over?With a rally 100% off the lows, $BTC is trading above a very large cluster of supply, that formed the 2022 floor.This week, we investigate indicators showing if the market making a robust bear market recovery…or not.https://t.co/eeQ1xeE07I pic.twitter.com/PKHJc7EF18— glassnode (@glassnode) April 17, 2023
Furthermore, the net unrealized profit/loss (NUPL) metric is currently neutral, suggesting that BTC is not oversold (as it was below $20k) or over-bought (as in over $50k).
“This is coincident with past cycles where a transition between a bear and bull markets have taken place.”
Additionally, Bitcoin hodlers with coins older than three months appear to be reluctant to sell, even with the rally to $30k.
Glassnode concluded that several on-chain indicators are suggesting that “bear market conditions, or at least the worst of it, may now be behind us.”
Crypto Market Cools
Price doesn’t move in a straight line, so bull market or not, there will be corrections. Bitcoin has dropped below $30k in a 1.8% slide on the day to trade at $29,464 at the time of writing.
Total market capitalization is down 1.2% to $1.3 trillion, according to CoinGecko.