| by Thomas Derks
The bitcoin price started the year 2023 fantastic with an increase of almost 40 percent in January. According to some, this could just mark the start of a new bull market, but there is no clarity, because according to some analysts, bitcoin continues to produce conflicting signals.
High correlation to the S&P 500
For example, Santiment, a company that produces price analysis, indicates that its high correlation to the US S&P 500 means that the chances of a bull run are limited at the moment.
“After a fantastic January for both traditional financial assets and Bitcoin, the predictable correction is now manifesting. The high correlation with the S&P 500 still limits the likelihood of another bull run,” said Santiment.
On the other hand, Messari sees a positive development for bitcoin with the Golden Cross on the daily chart. “Historically, a Golden Cross produces positive results for bitcoin over periods of six to 12 months,” said the more optimistic Messari.
The HODL army is accumulating
Messari’s positive sentiment is backed up by fresh data from Glassnode, which shares that bitcoin’s HODL army has gone into accumulation mode in recent months. What we often see during bear market lows is that investors who have been around for a long time within the industry strike and buy up bitcoin at the relatively low prices.
Bottom line, according to Glassnode data, that resulted in a BTC HODLer Net Position Change of plus 49,473,346 bitcoin. Of course, that says nothing about the possible start of a new bull market, but it is the data that indicates that confidence in bitcoin has certainly not disappeared in recent months.
According to the popular Dutch analyst CryptoMichaël, the current price is mainly a moment to zoom out. “The price is low, undervalued and will be much higher in the future. Use these prices to accumulate,” the analyst writes.
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