Historically, when the monthly Bitcoin (BTC) candlestick closes on previous candlesticks, the digital asset experiences a long-term rally.

On top of this higher timeframe pattern, Bitcoin’s monthly light closed above $ 13,000 in September for the first time since 2017. Additionally, the dominant cryptocurrency has shown signs of a clear breakout in the past two months.

Why Bitcoin May Be at the End of a New Rise
When it comes to the “Bitcoin Rally” story, the timing of the new Bitcoin rally makes sense. First, and perhaps most importantly, Bitcoin is currently in a cycle after being cut in two.

Every four years, the Bitcoin bonus is halved, reducing the frequency of new bitcoin mining by 50%.

Typically, BTC price has peaked 14-16 months after halving in the last two cycles. Thus, the peak of the next big rally in mid-2021 will be historically relevant.

Second, as Cointelegraph reported, there is low interest from both regular and new retail investors. Much of the demand for bitcoin appears to be coming from whales and the wealthy and what analysts call “smart money”.

The size of Bitcoin futures via the trading floor. Source: Data on digital assets.
As shown in the chart above, this increased participation can also be seen in increasing volumes in Bitcoin derivative markets such as CME, Bakkt, and LedgerX, as well as central exchanges offering futures trading.

In 2017, Bitcoin saw a massive influx of new retail money in the United States, South Korea, and Japan. As a result, spot volumes rose sharply in a short period, pushing BTC to $ 20,000.

This time, while the spot market is growing rapidly, according to Digital Assets Data and Arcane Research Out of Concern 2017.

Monthly transaction volume in BTC (USD). Source: Data on digital assets.
Hence, there is room for wider growth in the foreseeable future, especially if the retail trade increases.

What can restore the appetite of the majority?
Three years ago, there was a massive craze about bitcoin and cryptocurrencies in general because they accumulated far above stocks and other risky assets.

New retail investors were attracted by the unique fluctuations in cryptocurrencies, which caused Bitcoin to rise to an all-new high.

Bitcoin is currently showing an equivalent bullish trend, with no major reversals in the weekly and monthly charts. If the absolute momentum of BTC continues to rally without a major correction, it could lead to a renewed interest in it.

As traders and analysts note, investor sentiment towards Bitcoin improves significantly as more large companies and billionaires add BTC to their portfolios.

Recently, as reported by Cointelegraph, billionaire hedge fund investor Stan Druckenmiller became the last major investor to unveil his Bitcoin investment.

Based on this trend, Mikael Van de Pope, a full-time trader on the Amsterdam Stock Exchange, said market sentiment is likely to remain optimistic. he wrote:

“After Michael Sailor and others have invested in #Bitcoin, it is time for Stan Druckenmiller. It’s only a matter of time until the next and the next and the next come. Overall optimistic.
Bitcoin price is showing resilience after reaching $ 15,000 for the first time since 2017. Historical data suggests that a wider rally may appear after a major bullish trend in December.

Source: CoinTelegraph