According to analyst David Puell, Bitcoin is in need of just another on-chain signal in order to initiate a classic bull market. In a tweet made on the 17th of December, the creator of Puell Multiple went on to argue that the stage was absolutely set for the end of the price bear market of BTC.
While there have been many that had called for new lows for the BTC/USD exchange of $12,000 or less this particular cycle, there are some who do have a pretty bullish outlook for this cryptocurrency. For Puell, there are two extremely important on-chain phenomena that are necessary for the recovery of the BTC price that is currently in evidence. The long-term holders have also started resisting the urge to sell the cryptocurrency even though they are 70% away from the all-time high that took place the last time.
Bitcoin Is Missing Out On A Key Factor
At the same time, short-term speculators have also started feeling acute pain from the most recent price action of Bitcoin. As reported by Cointelegraph, these tourists are quite ready to leave the market. What Puell considers to be missing from the entire equation is a rise in the network activity from every single participant around.
He went on to summarize that there were three factors that one needed to turn bull. The first one was holding behavior from long-term investors. After that came the painful losses that most of the short-term speculators suffered. And finally, it needed a complete network activity across the entire board.
Puell also went on to add that the favorable macro conditions would definitely make it easy for Bitcoin to stage a turnaround, as well s crypto turning out to be more resilient to contagion that could come in the form of endogenous and exogenous swans. As of now, the exchange has been trading at a price of $16,700.