Bitcoin Bull Run Charges Ahead, Set to Surpass 2021 Surge

Despite a recent correction, one analyst maintains a bullish outlook for Bitcoin. Citing technical indicators and potential tailwinds, including developments in Hong Kong, the analyst predicts that the current bull run could surpass the strength of 2021. Notably, the approval of spot Bitcoin ETFs in Hong Kong, following the SEC's move in the US, is seen as a major turning point that could fuel further adoption and investment.

Bitcoin Bull Market Surges Ahead, Poised to Eclipse 2021 Surge: Analyst

Despite a recent correction of approximately 12% from its record peak, a prominent analyst maintains an optimistic outlook for Bitcoin. In a comprehensive analysis, the trader highlights a convergence of bullish technical indicators and potential tailwinds, particularly emanating from developments in Hong Kong.

2023 Bull Run outpaces 2021

At the time of writing, Bitcoin is experiencing a period of consolidation. However, this retracement follows a remarkable rally that propelled the cryptocurrency to not only double in value but also surpass its previous all-time high set in 2021. Driven primarily by retail investors, Bitcoin reached a historic milestone of approximately $70,000.

Institutional Backing Fueling Growth

The subsequent surge to a record high of $73,800 was largely attributed to institutional involvement. In January 2024, the United States Securities and Exchange Commission (SEC) approved multiple spot Bitcoin exchange-traded funds (ETFs). This decision has resulted in billions of dollars flowing into these products, notably those issued by financial powerhouses such as BlackRock and Fidelity.

Bullish Technical Signals

Based on these supportive fundamentals, the analyst contends that the current bull market is poised to surpass the 2021 surge in strength. The trader notes that key technical indicators, including the Average Directional Index (ADX) and Directional Indicators (DI), have flashed numerous bullish signals.

Flat Prices, Upbeat Sentiment

Although the price action may temporarily appear subdued, the formations on the daily chart suggest that market participants remain optimistic about Bitcoin and the broader cryptocurrency landscape. The presence of these bullish signals amidst sideways price movement indicates an underlying accumulation phase.

Gold's Surge, Bitcoin's Opportunity

Beyond technical factors, developments surrounding gold are also seen as a potential catalyst for Bitcoin. Gold recently experienced a breakout, reaching a high of $2,300 this week, as global economic uncertainty heightened the demand for the precious metal.

While Bitcoin has consistently outperformed gold in recent years, the analyst suggests that as gold ascends to new highs, it could potentially propel Bitcoin, often referred to as "digital gold," to follow suit.

Hong Kong's Spot Bitcoin ETFs: A Game-Changer

Upcoming events in Hong Kong could further accelerate Bitcoin's upward momentum. Following in the footsteps of the US SEC, Hong Kong's Securities and Futures Commission (SFC) is considering approving multiple applications for spot Bitcoin ETFs. These ETFs would enable investors of all types, including institutions, to gain exposure to Bitcoin.

One of the notable applicants is Harvest Fund Management, a mainland China-based asset manager. The approval of spot Bitcoin ETFs in Hong Kong would signal a significant shift in the territory's stance towards cryptocurrency investment and regulation.

Conclusion

The combination of bullish technical signals, gold's surge, and the potential approval of spot Bitcoin ETFs in Hong Kong suggests that the current bull market could eclipse the strength of its 2021 predecessor. Analysts remain optimistic about Bitcoin's long-term prospects, particularly as institutional adoption and mainstream acceptance continue to grow.