Analysts explain why the bull cycle is not over yet

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This article is also available in Spanish.

Bitcoin’s ongoing rebound, which has regained its price of $62,000 today, has sparked renewed optimism in the cryptocurrency community.

According to a recent one analysis According to CryptoQuant analyst Crypto Dan, the current market is still in a bullish phase, with promising long-term prospects for Bitcoin holders.

While the market has faced short-term headwinds, key indicators suggest further gains may be on the horizon.

Bull Run is still going on

Crypto Dan’s insights, shared on the CryptoQuant QuickTake platform, highlight how Bitcoin’s current move mirrors patterns seen in previous bull cycles. In particular, Dan noted that long-term investors took profits twice during the 2013 and 2020 bull markets.

Bitcoin long-term holders indicator. | Source: CryptoQuant

He further pointed out that the market peak in 2017 was different from each other and did not include corrections from the same period in other cycles. Dan suggested that if we follow the patterns of 2013 and 2020, the current market could be poised for another significant surge.

In addition to the cycle comparison, Dan highlighted the global macroeconomic situation, in particular the recent trend of interest rate cuts by central banks around the world.

He explained that while it may take several months for liquidity to fully return to markets, prices typically lead this development based on investor expectations.

This pre-emptive move could set the stage for significant price gains by 2025, offering long-term investors the potential for significant gains. The analyst advised:

If you “invest” for the long term rather than the miniature term, you are more likely to get a much better result.

Bitcoin Bounces, Coinbase Premium Points to Accumulate

Meanwhile, Bitcoin has shown signs of recovery after falling to $58,000 earlier in the week. At the time of writing, the asset is trading at $62,080, up 2.4% in the last 24 hours.

Bitcoin (BTC) price chart on TradingView
BTC price is moving up on the 2-hour chart. Source: BTC/USDT on TradingView.com

This recovery has been met with positive sentiment from the crypto community, especially as other indicators point to continued Bitcoin accumulation.

Another CryptoQuant analyst, Avocado Onchain, provided further information observations on Bitcoin price movements, with particular emphasis on Coinbase Premium, an indicator measuring the difference between Bitcoin prices on Coinbase and other exchanges.

Bitcoin Coinbase Premium Vulnerability.
Bitcoin Coinbase Premium Vulnerability. | Source: CryptoQuant

Avocado explained that Coinbase Premium dropped to -100 points, which is usually a bearish signal. However, Bitcoin’s price has since rebounded, suggesting a positive outlook.

According to the analyst, historically, during a bull market, Bitcoin’s price tends to rebound when Coinbase Premium drops below -50. This pattern has continued over the past year, with Bitcoin consolidating in a wide price range over the past eight months.

Bitcoin Coinbase Premium Vulnerability.
Bitcoin Coinbase Premium Vulnerability. | Source: CryptoQuant

Avocado noted that during bear markets such negative premiums typically led to panic and selling, but that has not happened currently. Instead, the data indicates that larger players may be accumulating Bitcoin at lower prices, signaling that the bull market “may not end.”

Featured image created with DALL-E, chart from TradingView

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