Bitcoin Price Could Hit 83% Amid $3.9B Futures Expiry, Analyst Suggests.
A recent study by analyst at CryptoQuant on QuickTake about Bitcoin explains in detail that this could be just the beginning of huge market shifts in Bitcoin’s recent price action. The analyst digs really deep into historical data about the price trends of Bitcoin and new market participants, looking at the patterns that might indicate future movements.
Historically, the larger bull cycles for Bitcoin have culminated at a point when the influx of new investors reaches critical mass, driven by FOMO. Typically, what happens in these cycles is that the price surges after new entrants flood to the market to ride on the rising value of Bitcoin.
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A Quiet Buildup in the Current Cycle
This cycle is different from the past trends. Note that there is no peak price driven by new inflows, unlike what was seen in the recent ascent, where new investor activity was not high. The abnormality of this fact hints at other factors in the larger financial ecosystem that could hold up Bitcoin’s price increase.
Impact from Spot ETF
The new bull cycle is found to be well-supported by the launch and performance of spot ETFs over Bitcoin. Such financial instruments opened a regulated, much more accessible channel for veteran and new investors alike to invest in Bitcoin. This kind of regulated entry is going to stabilize the price of Bitcoin without the spike of new participants one would expect in previous cycles.
According to the CryptoQuant analysis, this might be pointing toward what could be in store for the future. The minor wave of new inflows seen early in 2024 may be only a lead-up to more pronounced market behavior in the upcoming cycles. Connected with the foregoing, little or no activity of the new entrant in the current price tops is a leading indicator that Bitcoin will experience longer periods of upward movement once more investors come into the market and existing ones start contributing.
Analyst Comment on Bitcoin Price Trends
Bitcoin is in bull territory, with the price now above $65,000, changing hands at $67,495, an increase of 3.8 percent in the past 24 hours. This, by no means, has deterred analysts from making far-reaching positive posts regarding Bitcoin’s prospects.
Specifically, an analyst with a pseudonym, Moustache, called out on Elon Musk’s social media platform X that the price action of Bitcoin is trending ever closer to spell what the Wyckoff Reaccumulation Model portends: a dramatic surge might be near.
Read also: Etherium Loses 7.5% in Value as Tech Stock Giant Nvidia Trades in Red.
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