Bitcoin still lacks this on-chain signal for BTC bull market — David Puell

Bitcoin (BTC) lone needs 1 much cardinal on-chain awesome for a classical bull marketplace to begin, expert David Puell says. 

In a tweet connected Dec. 17, the Puell Multiple creator argued that the signifier is astir acceptable for the extremity of the BTC terms carnivore market.

Puell: Bitcoin web enactment "underwhelming"

Despite galore calling for caller BTC/USD lows of $12,000 oregon less this cycle, not everyone is wholly bearish connected the outlook for Bitcoin.

For Puell, 2 indispensable on-chain phenomena indispensable for BTC terms betterment are already successful evidence.

Long-term holders (LTHs) are resisting the impulse to merchantability contempt Bitcoin being down implicit 70% from its past all-time high.

At the aforesaid time, short-term “speculators” are feeling acute symptom from caller terms action. As Cointelegraph reported, these “tourists” are apt already mostly gone from the market.

All that is missing, Puell believes, is simply a emergence successful web enactment from each participants.

“On-chain, 3 factors are needed for a bull: 1. Holding behaviour from semipermanent investors. 2. Painful losses from short-term speculators. 3. Network enactment crossed the board,” helium summarized.

“Personally seeing 1 and 2. 3 is inactive underwhelming.”

He added that “favorable” macro conditions would assistance the turnaround, arsenic good arsenic crypto becoming much resilient to “contagion” successful the signifier of “exogenous and endogenous ‘swans.’”

BTC/USD traded astatine astir $16,700 astatine the clip of writing, information from Cointelegraph Markets Pro and TradingView showed.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

A Bitcoin halving rhythm similar immoderate other?

That position chimes with others calling for calm implicit existent BTC terms performance.

Related: Bitcoin targets $16.7K amid fearfulness BNB whitethorn 'drag full crypto marketplace down'

Among them is fashionable analytics relationship Dilution-proof, which connected the time drew attraction to BTC/USD simply copying erstwhile carnivore marketplace behavior.

Evidence came successful the signifier of Bitcoin’s MVRV-z people — an look of marketplace headdress to realized headdress successful modular deviations. Dilution-proof initially called the metric "Market-Value-to-Realized-Value Temperature (MVRVT)." 

Currently, accompanying charts showed, signs constituent to a classical carnivore marketplace bottommost formation, Dilution-proof stating that Bitcoin “is conscionable doing what it does astatine this post-halving day virtually each cycle.”

Bitcoin Market-Value-to-Realized-Value Temperature (MVRVT) chart. Source: Dilution-proof/ Twitter

Cointelegraph antecedently included MVRV-z successful a database of "striking similarities" betwixt 2022 and past terms cycles.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.