Bitcoin is still a bull market for BTC – David Poole This is missing a signal on the chain

Bitcoin (BTC) needs only one more signal on the chain to start a pronounced bull market, according to analyst David Poole.

as if Twitter On December 17, the creator of Pool Multiple argued that the level is set for the end of the BTC price bear market.

Pool: Bitcoin Network Activity “Sad”

Although many are calling for a new BTC/USD cycle low of $12,000 or less, not everyone is entirely on board with Bitcoin’s outlook.

For Puel, two on-chain events important to BTC’s price recovery are on the horizon.

Long-term holders (LTHs) are resisting the urge to sell even though Bitcoin is down more than 70% from its recent high.

At the same time, short-term “speculators” feel the pain of recent price action. According to Cointelegraph, these “tourists” have largely disappeared from the market.

All that’s missing, Poole believes, is the rise of network activity from all participants.

“On the chain, three things are needed for a bull: 1. Behavior from long-term investors. 2. Short-term speculation that hurts losses. 3. Network activity across the board,” he summarized.

“1 and 2. Seeing 3 individually is still weak.”

He added that “favorable” macro conditions will help the shift, and that crypto will be more resilient to “contagion” in the form of “external and internal ‘swans’.”

BTC/USD was trading around $16,700 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

Is Bitcoin Half-Cycle Like Another?

That view, along with others, calls for stability in BTC’s current price performance.

RELATED: Bitcoin Targets $16.7K, BNB ‘Could Drag Entire Crypto Market Down’

Prominent among them is the analytical label Dilution-Proof, which drew attention to BTC/USD that day for simply mimicking the previous bear market behavior.

The proof comes from Bitcoin’s MVRV-z result – an expression of market cap in standard deviation. Dilution-proof originally called the measure “market-value-to-actual-value-warmth (MVRVT)”.

Currently, as the accompanying charts show, signs point to a classic bear market bottom, dilution-proof. he said. “Bitcoin is doing what it’s doing this post-halving day literally every cycle,” he said.

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

Cointelegraph previously included MVRV-z in a list of “striking similarities” between 2022 and previous price cycles.

The views, ideas and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.