Bitcoin (BTC) solely wants yet one more key on-chain sign for a traditional bull market to start, analyst David Puell says.

In a tweet on Dec. 17, the Puell A number of creator argued that the stage is nearly set for the top of the BTC worth bear market.

Puell: Bitcoin community exercise “underwhelming”

Regardless of many calling for brand spanking new BTC/USD lows of $12,000 or much less this cycle, not everyone seems to be wholly bearish on the outlook for Bitcoin.

For Puell, two important on-chain phenomena vital for BTC worth restoration are already in proof.

Lengthy-term holders (LTHs) are resisting the urge to promote regardless of Bitcoin being down over 70% from its final all-time excessive.

On the identical time, short-term “speculators” are feeling acute ache from current worth motion. As Cointelegraph reported, these “vacationers” are possible already largely gone from the market.

All that’s lacking, Puell believes, is an increase in community exercise from all members.

“On-chain, three elements are wanted for a bull: 1. Holding conduct from long-term buyers. 2. Painful losses from short-term speculators. 3. Community exercise throughout the board,” he summarized.

“Personally seeing 1 and a couple of. 3 continues to be underwhelming.”

He added that “favorable” macro circumstances would help the turnaround, in addition to crypto turning into extra resilient to “contagion” within the type of “exogenous and endogenous ‘swans.’”

BTC/USD traded at round $16,700 on the time of writing, knowledge from Cointelegraph Markets Professional and TradingView confirmed.

A Bitcoin halving cycle like another?

That perspective chimes with others calling for calm over present BTC worth efficiency.

Bitcoin targets $16.7K amid worry BNB could ‘drag entire crypto market down’

Amongst them is fashionable analytics account Dilution-proof, which on the day drew consideration to BTC/USD merely copying earlier bear market conduct.

Proof got here within the type of Bitcoin’s MVRV-z rating — an expression of market cap to realized cap in normal deviations. Dilution-proof initially referred to as the metric “Market-Worth-to-Realized-Worth Temperature (MVRVT).”

Presently, accompanying charts confirmed, indicators level to a traditional bear market backside formation, Dilution-proof stating that Bitcoin “is simply doing what it does at this post-halving date actually each cycle.”

Cointelegraph beforehand included MVRV-z in a listing of “hanging similarities” between 2022 and previous worth cycles.

The views, ideas and opinions expressed listed here are the authors’ alone and don’t essentially mirror or symbolize the views and opinions of Cointelegraph.