Bitcoin

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	<p>Bitcoin appears to be entering a new &#8220;speculation cycle,&#8221; characteristic of a bull run, according to a recent analysis by Philip Swift, creator of data resource LookIntoBitcoin and co-founder of trading suite Decentrader.</p>
<p>Swift pointed to the behavior of the RHODL Ratio metric as evidence of history repeating itself.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">1/ When I created the <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#bitcoin</a> RHODL Ratio indicator in 2020, one thing that struck me was how it showed a new bull run forming&#8230;when the ratio value of younger coins began to increase.</p>
<p>Which is where we are right now</p>
<p>Don&#39;t panic about small price pullbacks. Zoom out. <a href="https://t.co/1qEmLYQOLf" rel="nofollow" target="_blank">pic.twitter.com/1qEmLYQOLf</a></p>
<p>&mdash; Philip Swift (@PositiveCrypto) <a href="https://twitter.com/PositiveCrypto/status/1658471903919587328?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 16, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>The RHODL Ratio, a metric developed by Swift in 2020, tracks <a href="https://crypto.ro/criptomonede/bitcoin/">Bitcoin</a>&#8216;s price behavior based on the realized price of its supply—the price at which coins last moved.</p>
<p>By comparing the relative ages of coins that moved one week ago to those that moved 1-2 years ago, the ratio offers insights into the activity of short-term and long-term holders, and the extent of market speculation.</p>
<p>Currently, the RHODL Ratio is bouncing higher, having hit its green accumulation zone at the end of 2022. Swift believes that the uptick in speculative activity signals a new bull cycle is already underway. He encourages investors not to worry about minor price pullbacks, advising them to &#8220;zoom out.&#8221;</p>
<p>Despite a blow-off top for <a href="https://www.tradingview.com/chart/2yxD5vWJ/?symbol=BITSTAMP%3ABTCUSD" rel="nofollow noopener" target="_blank">BTC/USD</a> in the 2021 bull market, the RHODL Ratio did not see a similar move. The last time the metric reached its red &#8220;high speculation&#8221; zone was during Bitcoin&#8217;s previous all-time high in late 2017.</p>
<p>On shorter timeframes, Swift observed that market participants remain risk-averse on crypto markets, with various bearish ratings for <a href="https://crypto.ro/bitcoin/">Bitcoin</a> generated by <a href="https://www.decentrader.com/funding-open-interest-and-long-short-ratios-foils/" rel="nofollow noopener" target="_blank">Decentrader</a>. The current market sentiment appears to be one of fear, depression, and disinterest.</p>
<figure id="attachment_21635" aria-describedby="caption-attachment-21635" style="width: 1308px" class="wp-caption alignnone"><img decoding="async" class="wp-image-21635 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/05/Market-data-for-various-major-cryptocurrencies.webp" alt="Market data for various major cryptocurrencies" width="1308" height="720" srcset="https://crypto.ro/en/wp-content/uploads/2023/05/Market-data-for-various-major-cryptocurrencies.webp 1308w, https://crypto.ro/en/wp-content/uploads/2023/05/Market-data-for-various-major-cryptocurrencies-300x165.webp 300w, https://crypto.ro/en/wp-content/uploads/2023/05/Market-data-for-various-major-cryptocurrencies-1024x564.webp 1024w, https://crypto.ro/en/wp-content/uploads/2023/05/Market-data-for-various-major-cryptocurrencies-768x423.webp 768w, https://crypto.ro/en/wp-content/uploads/2023/05/Market-data-for-various-major-cryptocurrencies-750x413.webp 750w, https://crypto.ro/en/wp-content/uploads/2023/05/Market-data-for-various-major-cryptocurrencies-1140x628.webp 1140w" sizes="(max-width: 1308px) 100vw, 1308px" title="Bitcoin&#039;s new bull run cycle on the horizon, suggests RHODL ratio 1"><figcaption id="caption-attachment-21635" class="wp-caption-text">Market data for various major cryptocurrencies | Decentrader</figcaption></figure>
<p>Swift warned that while there is cause for optimism, it&#8217;s essential to be prepared for all eventualities, including a possible return to $20,000 in the final year leading up to Bitcoin&#8217;s next block subsidy halving.</p>

Bitcoin’s new bull run cycle on the horizon, suggests RHODL ratio

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