Rally

2024

United

Bitcoin

<p>Despite reaching new 2024 highs and nearing 2021’s peak, Willy Woo, an on-chain analyst, argues that the true Bitcoin bull market has yet to begin. In a&nbsp;<a class="editor-rtfLink" href="https://twitter.com/woonomic/status/1764847023549997490" target="_blank" rel="noopener nofollow">post</a>&nbsp;on X, Woo is buoyant, saying that the recent surge is a mere “warm-up” before a larger rally.</p> 
<h2 id="tradfi-is-in-for-a-shock-analyst">TradFi Is In “For A Shock”: Analyst</h2> 
<p>Citing events in the Bitcoin Macro Index, the analyst contends that even with BTC breaking records as it climbs higher, it is not backed by “full fundamentals.” This outlook is because BTC prices remain below a crucial level on the index. If this level is broken, Woo warns, the <a href="https://bitcoinist.com/how-digital-bonds-can-mitigate-volatility-in-the-crypto-market/" target="_blank" rel="noopener ">traditional market</a> will be in “for a shock.”</p> 
<img loading="lazy" decoding="async" class="size-full wp-image-285324" src="https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628" alt="Bitcoin Macro Index chart | Source: Willy Woo on X" width="1024" height="628" srcset="https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=2560 2560w, https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/03/GH3-YvBbEAAIBcy.jpg?resize=1024%2C628?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
<p>The Bitcoin Macro Index is a composite indicator considering on-chain and macroeconomic factors. While on-chain activities like hash rate and transactions are crucial, Bitcoin is now intertwined with the global financial system. </p> 
<p>As such, the index was designed to provide a holistic preview of the Bitcoin market, going beyond just price movements. To ensure this is captured, the index integrates readings of macroeconomic data, including inflation, labor market conditions, and interest rates, mainly from the United States.</p> <a href="https://www.tradingview.com/x/JFL2PbDX/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/JFL2PbDX/" alt="Bitcoin price trending upward on the daily chart | Source: BTCUSDT on Binance, TradingView" width="1787" height="904"></a> 
<p>Woo observes that though Bitcoin prices are at record highs, the coin is yet to break above a key level of the index. Currently, the index is consolidating horizontally, diverging from the sharp increment in Bitcoin prices. </p> 
<p>However, this can change rapidly if the index breaks higher, depending on on-chain and macro events, including interest rate decisions in the United States.</p> 
<h2 id="eyes-on-the-fed-will-bitcoin-rally-to-record-highs">Eyes On The Fed, Will Bitcoin Rally To Record Highs?</h2> 
<p>So far, eyes are on the United States Federal Reserve (Fed) and whether they will shift their monetary policy from hawkish to dovish. Taking a dovish stance means the central bank will consider slashing interest rates from current levels. </p> 
<p>Often, reducing interest rates translates to a more accommodating economy, flush with more capital in circulation. Historically, this tends to support crypto and stock markets. However, the question is whether or not the Fed will decrease interest rates for the first time since the sharp increase throughout 2021 and early 2022.</p> 
<img loading="lazy" decoding="async" class="size-full wp-image-285326" src="https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836" alt="Top ETFs | Source: HODL15Capital via X" width="1024" height="836" srcset="https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836?w=1996 1996w, https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836?w=514 514w, https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836?w=808 808w, https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/03/GHts9AbXUAAwGZ5.jpg?resize=1024%2C836?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
<p>Before the Fed decides on interest rates, BTC continues to rally. Since mid-January 2024, following the approval of multiple Bitcoin exchange-traded funds (ETFs), the industry has had record-breaking inflows. BlackRock’s product, IBIT, has since&nbsp;<a class="editor-rtfLink" href="https://twitter.com/HODL15Capital/status/1764123480373469255" target="_blank" rel="noopener nofollow">received</a>&nbsp;over $10 billion and could rise even higher as BTC prices rally.&nbsp;</p>

Analyst: Bitcoin Bulls In A Mere “Warm Up,” A Mega Rally Incoming

Table of Contents

Bitcoinist

Other articles published on Mar 5, 2024

Bitcoin Surges Towards Peak as Market Momentum Intensifies

Michael Saylor Says Bitcoin ETFs And AI Will Ignite A Decade-Long “Gold Rush” For BTC

Bitcoin Vs. CBDC: VanEck Advisor Advocates BTC Adoption Amid BRICS Latest Move

Shiba Inu enters top 10 cryptos, whale activity skyrockets

Trending Cryptocurrencies Today

MicroStrategy announces $600M convertible senior notes offering for Bitcoin acquisition

Join our free newsletter for daily crypto updates!