A few months have passed since the price of Bitcoin reached a new record.

The price of Bitcoin rose and reached the level of 65,000 dollars in April, then fell to less than 30 thousand dollars in the month of July, and returned to a new all-time high yesterday, 20 October.

Many analysts and followers are drawing comparisons between the market dynamics in April and now, analyzing the reasons for the severity of this rally.

Here are some of the reasons that could make Bitcoin more bullish than before:

The spread of FOMO feelings:

One of the main catalysts for the Bitcoin price rally to record levels is the horde of retail traders rushing to buy Bitcoin in the past hours.

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This is what is commonly referred to as the fear of missing out, or FOMO, and we saw this in 2017 and in April of this year, and data from Google Trends confirms this:

The above chart from the past five years shows that in December 2017, when Bitcoin peaked at around $20,000, Bitcoin searches reached an all-time high.

It also started increasing in April of this year, when bitcoin hit an all-time high just under $65,000.

Now, there are no real signs of retail investors in the market.

This means that we are not even close to actual FOMO levels, which makes many believe that there is a lot of upside ahead.

The market is not overindebted:

One way to compare the level of market over-leverage in April compared to today is to look at the SOPR for long-term holders.

The chart above shows that in April, long position holders were raking in profits with 8X average leverage, and now they are doing so with 3X average leverage, which is a huge drop.

Another way to measure this is by the total value of the filtered deals.

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On April 18, the total market cap lost about $360 billion in a matter of hours, and the bitcoin price collapsed by $9,000.

This triggered a historic liquidation event where more than $10 billion of long and short positions were wiped out from the market.

Now, similar things happened in September amid the new wave of Chinese bans taking Bitcoin down from $52,000 to $42,000 very sharply.

However, liquidations at the time were not close to April levels.

In April, we used to see billions of dollars of liquidations per day, as both the bulls and the bears were over-leveraged which could also have been inferred from the very high funding rates.

Now, on the exact day that Bitcoin broke all-time highs and went through massive fluctuations over the past 24 hours, there was only about $300 million of liquidation.

This also means that the potential for significant leverage is much lower since fewer traders are using leverage.

Strong Basics:

It is true that Bitcoin fundamentals strengthened throughout 2021 overall, but the rally in April was prompted by an event that may not be as meaningful as many have described, namely Tesla’s participation in the crypto market.

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Now, things are particularly different, as institutional investors continue to flock to the industry.

This is after the approval of the first Bitcoin ETF backed by futures contracts in the USA.

The Bitcoin futures ETF is one of the most exciting products on Wall Street, with a trading volume of billions and bringing in more than half a billion dollars in assets.

The Bitcoin futures ETF outperforms other major ETFs like VOO in terms of trading volume.

This has significantly legitimized the market and opened the door to more traditional investors as it provides a regulated product that they can take advantage of.

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