Bitcoin Reclaims $62k: Analysts Explain Why The Bull Cycle Is Far From Over
12 Octobre 2024 - 6:30AM
NEWSBTC
The Bitcoin ongoing rebound, reclaiming the $62,000 price mark once
again today, has sparked renewed optimism in the cryptocurrency
community. According to a recent analysis by CryptoQuant analyst
Crypto Dan, the current market is still amid a bull cycle, with
promising long-term prospects for Bitcoin holders. While the market
has faced some short-term turbulence, key indicators suggest that
more gains may be on the horizon. Related Reading: Bitcoin On The
Brink: Will $60K Hold Or Is A Major Correction Coming? Bull Run Is
Still In Progress Crypto Dan’s insights, shared on the CryptoQuant
QuickTake platform, highlight how Bitcoin’s current movement
mirrors patterns seen in previous bull cycles. Specifically, Dan
noted that long-term investors realized profits twice during the
2013 and 2020 bull markets. He further pointed out that 2017’s
market peak differed, lacking the same period adjustments in other
cycles. Dan suggested that if we follow the patterns of 2013 and
2020, the current market could be poised for another significant
upswing. In addition to the cycle comparison, Dan emphasized the
global macroeconomic situation, specifically the recent trend of
interest rate cuts by central banks worldwide. 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 anticipatory movement could set the stage for
significant price increases by 2025, offering long-term investors
the potential for substantial gains. The analyst advised: If you
“invest” through a big frame rather than a short-term picture, you
are more likely to get a much better result. Bitcoin Bounces Back,
Coinbase Premium Points to Accumulation Meanwhile, Bitcoin has
shown signs of recovery after dipping to $58,000 earlier in the
week. At the time of writing, the asset is trading at $62,080,
marking a 2.4% increase in the past 24 hours. This recovery has
been met with positive sentiment from the crypto community,
especially as other indicators point to the continued accumulation
of Bitcoin. Another CryptoQuant analyst, Avocado Onchain, provided
further insights into Bitcoin’s price movements, particularly
focusing on the Coinbase Premium, an indicator that measures the
difference between Bitcoin prices on Coinbase and other exchanges.
Avocado explained that the Coinbase Premium dropped to -100 points,
typically a bearish signal. However, Bitcoin’s price has since
rebounded, suggesting a positive outlook. Related Reading: Bitcoin
Price Hope: Mt. Gox Delays Repayment Plan Until October 2025
According to the analyst, historically, during bull markets,
Bitcoin’s price tends to bounce back after the Coinbase Premium
falls below -50. This pattern has held true over the past year,
with Bitcoin consolidating within a broad price range for the past
eight months. Avocado noted that, in a bear market, such negative
premiums would typically lead to panic selling, yet that has not
been the case now. Instead, the data indicates that larger players
may be accumulating Bitcoin at lower prices, signalling that the
bull market “may not be over.” Featured image created with DALL-E,
Chart from TradingView
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