As a seasoned researcher with over two decades of experience in financial markets, I have witnessed numerous bull and bear cycles, and I must admit that I am cautiously optimistic about Bitcoin’s current rebound. The parallels between the current market and previous bull cycles, as highlighted by Crypto Dan’s analysis, are striking and provide a compelling argument for continued growth.
Today’s resurgence of Bitcoin back above $62,000 has reignited hope among cryptocurrency enthusiasts, suggesting a positive outlook within the community.
Based on a recent assessment by CryptoQuant analyst Crypto Dan, we’re currently in the midst of a bullish market phase, offering potentially favorable long-term possibilities for Bitcoin investors.
Even though the market has experienced some ups and downs recently, signs point towards further growth potential in the future.
Bull Run Is Still In Progress
According to Crypto Dan’s analysis posted on the CryptoQuant QuickTake platform, the current Bitcoin trend seems to echo patterns observed in past bullish periods. More precisely, he pointed out that long-term investors cashed out their gains not once but twice during the 2013 and 2020 market surges.
Dan noted that unlike other market cycles, the peak in 2017 didn’t align with the same period adjustments. He proposed that if we observe the trends from 2013 and 2020, the present market might be ready for another substantial surge.
Apart from discussing cyclical comparisons, Dan also highlighted the current global economic scenario, particularly the ongoing trend of reduced interest rates by central banks across the globe.
He explained that while liquidity may take several months to return to markets fully, prices typically move ahead of these developments based on investor expectations.
This preemptive action might pave the way for considerable price hikes by the year 2025, providing long-term investors with a chance for sizeable profits. The analyst recommended:
If you choose to invest with a long-term perspective instead of focusing on the short term, you’re more likely to achieve significantly better outcomes.
Bitcoin Bounces Back, Coinbase Premium Points to Accumulation
Currently, Bitcoin appears to be rebounding following a dip to around $58,000 earlier this week. As we speak, it’s being traded at approximately $62,080, which represents a 2.4% growth over the last day.
The positive vibe within the cryptocurrency community is evident following this recovery, particularly since other signals suggest that Bitcoin continues to be amassed.
A different analyst from CryptoQuant, known as Avocado Onchain, shared additional perspectives on Bitcoin’s price fluctuations, specifically zeroing in on the Coinbase Premium – a tool that calculates the gap between Bitcoin’s cost on Coinbase compared to other trading platforms.
Avocado clarified that the Coinbase Premium plummeted to 100 points below zero, usually indicating a bearish trend. Yet, contrary to expectation, the price of Bitcoin has recovered, hinting at an optimistic forecast instead.
Based on expert analysis, historically, when the Coinbase Premium drops below -50 during bull markets, Bitcoin’s price typically recovers. This trend has been consistent over the last year, with Bitcoin experiencing fluctuations within a wide price range for approximately the past eight months.
In a down market like this, you’d usually see significant selling due to negative premiums causing panic. However, contrary to expectations, it seems that bigger investors might be buying more Bitcoin at lower costs, suggesting that the bull market may still have some life left in it.
Read More
Sorry. No data so far.
2024-10-12 07:35