Of course, this does not necessarily mean that we are in or end up in a bull market, but at least the sentiment is starting to turn around. Several on-chain indicators support this sentiment and the main trend lines also scream about a bottom. A bottom that means we’re moving up again from now on.
The macroeconomic conditions
However, the most important factor at the moment seems to be the macroeconomic environment. The Federal Reserve with the monopoly on the American interest rate, it has the greatest means of power to determine the future of the market. With skyrocketing inflation and the strong job market in the United States, there seems to be a recipe for some solid rate hikes there. Only when the economy really starts to weaken can we count on interest rate cuts.
It is those rate cuts that Bitcoin needs to start that “new bull market”. Until then, this appears to be for a rally within the bear market. After all, conditions are still the same and central banks are far from controlling inflation. The media may be clamoring for a new bull market, but in this case a “see, then believe” mentality seems best.
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