Bitcoin (BTC), the largest cryptocurrency in the market could be close to starting a new bull trend. After it broke above $4,000, there are several enthusiasts that are very excited about this trend. There are different factors that could be related to Bitcoin being traded more positively, but is the bear market over?
Is Bitcoin’s Bear Market Over?
Bitcoin has surpassed $4,000 once again. The positive trend that Bitcoin and other digital currencies in the market are experiencing could be linked to different factors. In the last few days, Bitcoin’s price grew more than 2% allowing the virtual currency to move from $3930 up to $4,030.
These factors are related to the growth of the Bitcoin network. The Lightning Network (LN) has reached a new record in terms of network capacity. Just a year after being released as a beta, the Lightning Network has reached 1,064 BTC, 54% more than just a month ago. Additionally, the number of channels and nodes has also increased in the last 30 days.
Other fundamental aspects are related to the number of addresses in the network and the number of wallets created by users. According to Bitcoin’s sentiment index, on March 9, the network reached the highest point since December 16, 2018. Additionally, February has been the first positive month for Bitcoin’s price since July 2018.
Google Trends has also shown an increased interest in the term “Altcoins.” This shows that there are several individuals searching for different digital assets in the market. During the last few months, Litecoin (LTC) and Binance Coin (BNB) have performed in a very positive way. Indeed, these two virtual currencies were the best performing coins among the top 20.
Nonetheless, there are some things that we should take into account as well. For example, the number of tweets talking about Bitcoin has remained flat during the last few days, and it has reached new lows since 2015, which shows a lower interest from users about the digital asset.
At the time of writing, Bitcoin is being traded stable around $4,040 and it has a market capitalization of $71 billion. In order for it to keep growing and confirm that the market has bottomed, Bitcoin would have to move above $6,000. In 2018, $6,000 was a very important price for Bitcoin since it couldn’t break that level until November.