- The Santiment report explained that three events would be a recipe for a crypto market rebound this new year.
- Onymous crypto analyst, Smart Contracter, claims that the bear market’s worst period is over.
On-chain analytics firm, Santiment, has analyzed the scenarios that will lead to the next bull run in the crypto market. In its latest analysis, Santiment noted that social media discussions focus more on Bitcoin than other crypto assets whenever markets take off. The firm further remarked that discussions on Bitcoin on social platforms for the second half of 2022 ranged between 12.5 percent and 16.6 percent of conversations about all crypto assets.
The signs for the crypto market rebound
However, the figure is always around 20 percent under typical market situations. The Santiment report further explained that three events would be a recipe for a crypto market rebound this new year. They are justice against the former FTX executives, an increase in the trust of crypto exchanges, and a further increase in discussions about BTC on social platforms till it’s close to the 20 percent range.
At the time of writing, BTC trades at $16,824, according to Coingecko data. However, the leading digital asset was still over 75 percent off its peak price in November 2021. According to the Santiment data, last year was BTC’s accumulation year based on its 4-year cycle.
Historically, throughout BTC’s 14 years of existence, 2014, 2018, and 2022 have been its poorest-performing years. The analytics firm further noted that these accumulation years always come the year after the digital asset has established new all-time highs (2013, 2017, 2021).
Santiment remarked that even though these alternating years of the euphoric stage and profit-taking phase over the last four years have become predictable, it still doesn’t constitute the perfect alpha determinant of whether prices will go up or down.
Is the worst of the bear market over?
Meanwhile, Smart Contracter, the onymous crypto analyst who rose to fame following his accurate prediction of the 2018 BTC bottom, has claimed that the bear market’s worst period is over. While speaking to his 217,400 Twitter followers, Smart Contracter remarked that the beginning of the new year might bring in some new lows.
However, market conditions will improve as we enter the year.
it is safe to assume that the crypto carnage is behind us because there has been a destruction of about $2 trillion in wealth coupled with FTX’s bankruptcy filing. Let’s look forward to better times.
The worst of the crypto bear market is behind us, we may yet see a new low in Q1 but with FTX filing for
bankruptcy and a wealth destruction of around $2 trillion its probs safe to assume most of the carnage in crypto is behind us.Cheers to better times🍻#btc $eth
— Bluntz (@SmartContracter) January 3, 2023
The crypto analyst further said that tech stocks, particularly Tesla stocks, have a strong price correlation with Bitcoin. According to him, the BTC-TSLA chart correlation is crazier than the broader crypto’s correlation with tech stocks over the last couple of years.
Smart Contracter also shared insights into Ethereum’s price action. He said the smart contract platform would soon overcome the $1,226 resistance level and trade at the $1,260 and $1,280 range. The analyst said,
Ethereum is attempting a breakthrough of the 4-hour horizontal resistance and might complete the breakthrough once the low volatility holiday period is over. Then, it should trade between the $1,260-$1,280 levels.
Current Coingecko data shows that the leading altcoin trades at $1,250 and is down 0.2 percent in the last 24 hours.
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