Bitcoin bull run 

According to new data, an increasing number of people decide to “hodl” bitcoin by storing it in their wallets instead of moving it to exchanges for trading. This not only supports the general bullish sentiment in the crypto market, but also suggests that the next bull run may surpass the previous ones, as indicators show higher levels of hodling activity than observed during preceding bull markets.

On-chain analyst Willy Woo 

The data regarding hodling levels come from the on-chain analyst Willy Woo, who researched an indicator called “reflexivity”. The indicator measures market sentiments expressed in crypto investors’ preference to hodl their BTC as the bitcoin price rises. Reflexivity evaluates how valuable the retail investors predict their bitcoins to become, and as such it’s a great market of whether the current market sentiment is bullish or bearish. Currently, the indicator clearly points to a univocally optimistic outlook among investors.

Investors are holding on to their BTC 

One of the reasons why bitcoin owners are unwilling to part with their BTC at the time is the fact that many people expect a post-halving bull run to happen in 2021. The most recent halving happened on May 11, 2020, and historically bitcoin is known to rise in price for 12-15 months after each halving. Since a bull rally is expected to happen soon, most of the investors are unlikely to sell their bitcoins in the next few months.

BTC holders' unwillingness to sell their coins has been reflected in bitcoin price’s refusal to go below $10,000, even in light of negative happenings. The recent event where BitMEX was charged by the U.S. Commodities and Futures Trading Commission (CFTC) with violating the Bank Secrecy Act didn’t manage to affect BTC in a meaningful way - although bitcoin price went a little bit down at first, it immediately resurged to the previous level.

Reflexivity 

According to Willy Woo, bitcoin’s reflexivity indicates that the current bullish sentiment might be even stronger than during previous bull runs. Woo mentions that the current bull cycle differs from the preceding ones because “reflexivity is increasing rather than static compared to last cycles”.

Signals indicating a strong BTC bull run 

One of the reasons why the next bull run might surpass previous ones is the fact that aside from the recent halvening, fundamental analysis points to bitcoin dealing with the economic aftermath of COVID-19 pandemic in a superb way. Not only has the pandemic not managed to negatively affect BTC,but  in fact it can be seen as one of the factors contributing to the rising bitcoin price. As people grow worried about a possible economic crisis and increasing inflation, they look to bitcoin as a safe haven asset and a hedge against an uncertain future. 

Willy Woo’s analysis of bitcoin’s reflexivity is one of many positive indicators noted by analysts within the past few weeks. Along with other technical markers as well as strengthening fundamentals, it points toward a possible massive bull run incoming in the near future.