The latest upswing in Bitcoin (BTC) prices has sparked a resurgence of interest and confidence among investors, fueling the belief that the BTC bull run is gaining momentum.
As noted by trader and crypto analyst Adrian Zduńczyk, Bitcoin has achieved a new 52-week closing high and has consistently closed above the previous $32,000 peak for three consecutive weeks.
This sustained upward momentum not only points toward a robust bullish trend sentiment but also signifies the initiation of the third wave in the ongoing Bitcoin bull run.
Analyst Spotlights Crucial Trends
Zduńczyk identifies several prevailing trends that contribute to the optimistic outlook for Bitcoin. The ascending 200-week and 50-week moving averages (MAs) underscore the enduring strength of the long-term uptrend, with crucial support levels at $28,800 and $26,600.
Furthermore, there is a growing correlation with the S&P 500, evident in the 7-week correlation coefficient of 0.34. This alignment with traditional markets suggests an increasing similarity in Bitcoin’s trading patterns to that of the Nasdaq.
Fundamental drivers also play a pivotal role in Bitcoin’s upward trajectory. The anticipation of spot Bitcoin exchange-traded funds (ETFs) approval and the impending fourth halving event fuels positive sentiment among traders.
Moreover, Zduńczyk points to the historical pattern of previous halving events, emphasizing that Bitcoin has consistently experienced significant rallies post-halving, never retracing to pre-halving prices.
Analyzing the daily trend, Zduńczyk underscores the technical strength demonstrated by Bitcoin’s decisive breakout above $32,000. Breakouts often pave the way for new trend formations that endure over time.
Despite intermittent volatility, the rising trends in the 50-day average true range (ATR) and the 50-day relative strength index (RSI) momentum indicate sustained positive momentum.
While Bitcoin’s future appears promising, supported by favorable market trends, fundamental catalysts, and positive technical indicators, cautionary signals have been raised, as noted by renowned crypto analyst Ali Martinez.
Is Bitcoin’s Bullish Momentum in Jeopardy?
Martinez highlights the bearish divergence between Bitcoin’s price and network growth, suggesting a potential absence of sustained momentum in the current upward trend.
![](https://sollcrypto.com/wp-content/uploads/2023/11/Screen-Shot-2023-11-15-at-6.24.41-AM.png)
The chart depicted above illustrates a significant contrast between the steep ascent in Bitcoin’s price and the sharp decline in new addresses in recent days.
This bearish divergence prompts concerns regarding the overall robustness of the existing upward trend. Despite substantial gains in Bitcoin’s value, there has been a considerable decrease in the creation of new addresses.
Martinez points out that this bearish divergence between Bitcoin’s price and network growth acts as an on-chain sell signal, alerting traders to be cautious. The deceleration in network growth, despite the surge in price, implies that the ongoing upward momentum may lack the necessary strength for sustainability.
![](https://sollcrypto.com/wp-content/uploads/2023/11/Screen-Shot-2023-11-15-at-6.25.18-AM.png)
As of the current moment, BTC is priced at $36,200, reflecting a 1.6% decline in the last 24 hours. Nevertheless, it has recorded a notable 4.6% increase over the past 7 days.
The future trajectory hinges on whether an increase in new addresses can bolster BTC’s bullish momentum and facilitate a breakout from the ongoing consolidation phase. Conversely, there is the possibility that the cryptocurrency may undergo a retest of support levels in the days ahead.