Bitcoin appears to be in the early stages of its next bull run, with the cryptocurrency’s price rallying past $12,000 today and setting fresh yearly highs at $12,400.
Although there’s no denying the overt strength that the benchmark cryptocurrency has seen in recent times, some investors are worried that this upswing may end in a similar way to that seen last summer – when BTC peaked at $13,800 before beginning a multi-month descent.
Several factors show why this upswing is different from those seen in years past, with the crypto’s fundamental strength far exceeding that seen over the past few years.
Bitcoin surges to fresh 2020 highs as bulls take the reigns
There’s no denying that bulls are in full control of Bitcoin at the present moment.
After a multi-week consolidation phase between $11,200 and $12,000, BTC was able to shatter the upper boundary of this range earlier today, subsequently surging as high as $12,400 before its momentum began stalling.
Unlike previous attempts to break above this level, the crypto has yet to see any firm rejection. This indicates that bears are losing their strength and that further upside may be imminent.
At the time of writing, Bitcoin is trading up over four percent at its current price of $12,400, around where it has been trading throughout the past few hours.
Unless it declines back below $12,000, its short-term outlook remains incredibly bright.
Here’s why this latest BTC uptrend differs from those seen previously
This isn’t the first time since the 2017 selloff that BTC has rallied, as it saw a sharp move up to highs of nearly $14,000 in late-June of 2017.
Although that move is now widely considered to have been a bull trap, some fundamental metrics show this time is truly different.
One popular pseudonymous Bitcoin advocate named “Vortex” shared four metrics showing BTC’s striking fundamental strength. He explained:
“All these charts resembling early 2017 patterns indicating Bitcoin is beginning a multi-year bull run: -Segwit adoption reaches new ATH -HR [hash rate] reaches new ATH -BTC not moved in 1+ yrs still at ATHs at over 63% -Google trends building.”
These factors show that Bitcoin is building strength from an on-chain standpoint (i.e., SegWit adoption, high hash rate) as well as a fundamental standpoint (i.e., Google search trends, the strength of current holders).
The confluence of these factors shows that, unlike in 2019 and even in 2017, Bitcoin’s current price drivers are all relating to its underlying strength.
Bitcoin, currently ranked #1 by market cap, is up 3.67% over the past 24 hours. BTC has a market cap of $226.55B with a 24 hour volume of $27.56B.
Bitcoin Price Chart
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