Bitcoin’s bull cycle has not changed despite investor fears over current correction which could only be temporary “shakeout” According to analysts, the cryptocurrency market is poised for a new leg-up.
Bitcoin’s (BTCThe price has fallen by over 22% since its peak of more than $109,000, which was recorded on January 20th on the US president’s day Donald Trump’s inaugurationCointelegraph Markets Pro The data show.
Despite investor sentiment dropping into “Extreme Fear” multiple times, historic chart patterns suggest that this may just be a price shakeout — a sudden price drop caused by multiple investors exiting their positions, preceded by a sudden price recovery.
“Several key technical indicators have turned bearish, leading to speculation that the bull cycle may be ending prematurely,” Cointelegraph reports that Bitfinex analysts.
BTC/USD, 1-year chart. Source: Cointelegraph
“Despite this, Bitcoin’s 4-year cycle remains an important factor, historically shaping price movements,” Analysts added:
“Corrections within bull cycles are normal, and past trends suggest that this may be a shakeout rather than the start of a prolonged bear market.”
There is also the US Spot Bitcoin Exchange-Traded Funds (ETFs), temporarily surpassed $125 billion Crypto investments by institutions are growing, and this is reflected in the growth of cumulative crypto holdings. “clear that the conventional cycle ceases to exist,” The analysts also added.
Related: Bitcoin needs weekly close above $81K to avoid downside ahead of FOMC
Bitcoin’s daily closing price on March 15 was above $84,000, the highest it has been in over a month since March 8. TradingView The data show.
BTC/USD, 1-day chart. Source: TradingView
However, due to Bitcoin’s correlation with traditional financial markets, BTC may only find a bottom along with equity markets, particularly the S&P 500, said Bitfinex analysts, adding:
“While $72,000–$73,000 remains a key support range, the broader market narrative, especially global treasury yields and equity trends, will dictate Bitcoin’s next major move.”
“Trade wars have already been priced in, to some extent, but prolonged economic strain could weigh on sentiment,” The analysts also added.
Related: Rising $219B stablecoin supply signals mid-bull cycle, not market top
Nexo analyst: Bitcoin price still influenced by four-year cycle and halving of bitcoin.
The four-year cycle and the Bitcoin halving eventIliya Kachev, a dispatch analyst for Nexo’s digital asset investment platform, says that the price of Bitcoin is still very important.
“Bitcoin’s four-year compound annual growth rate (CAGR) has declined to a record low of 8%, posing questions about whether its traditional four-year cycle remains valid,” Kalchev, who told Cointelegraph:
“Although strong institutional adoption over the past year has served as a significant tailwind for Bitcoin, its halving events are still expected to exert long-term influence.”
It is important to note that the word “you” means “you”. 2024 Bitcoin halving The Bitcoin Network’s Block Reward has been reduced to 3,125 BTC each.
Chart of BTC/USD for 1 day since 2024. Source: TradingView
Since April 20, 2024 when the coin was first released, Bitcoin’s price is over 31 percent higher. the “most bullish” setup Bitcoin’s price is partly due to the increasing institutional interest.
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Source: cointelegraph.com
