Markets
Bitcoin Bull Market Is 50% Over, But This Is What’s Next
- Bitcoin could wait until the third or fourth quarter before the bull run continues
- BTC price could reach $101,500 before the end of 2024
Bitcoin [BTC] the journey to higher value on the charts might take longer than initially expected. This appears to be the case after AMBCrypto analyzed a few crucial on-chain metrics.
In fact, at press time, BTC numbers were observed to be declining. This drop could be a sign that most Bitcoin holders are inclined to accumulate more coins, instead of selling them.
Has the race for big money taken a break?
Here, it is worth pointing out that the drop in reserves has proven that Bitcoin is in a bull market. However, the metric also suggests that Bitcoin could be 50% away from its potential market high this cycle.
At the time of writing, BTC was valued at $67,937, with the crypto seeing a notable decline from its ATH in March. Falling reserves and price combination indicate Bitcoin could be hunting for liquidity.
Source: CryptoQuant
In trading, liquidity chasing occurs when market participants seek low liquidity while prices are moving in a short range. Market assessment by AMBCrypto showed that Bitcoin is trading between $64,000 and $68,000.
This price inefficiency is a sign that BTC could do not do a significant upward movement until the end of the second quarter (Q2). As such, the uptrend may stop and begin its next leg in the third quarter, lasting until the end of the fourth quarter of this year.
XBTManager, an analyst at CryptoQuant, also shares a similar thought. In his analysis, he explain,
“Bitcoin is strengthening for the next rise. When it gathers enough strength, a big rise seems to be in store. It seems likely that increases like those in the third and fourth quarters will continue.
This opinion also matches the fear and greed index of cryptocurrencies. This index shows whether the price of the cryptocurrency is fair, too expensiveor undervalued based on market sentiment.
Bitcoin Price May Double
At press time, the indicator showed a reading of 60 – a sign that greed in the market was not extreme. Therefore, Bitcoin appeared to be reasonably priced on the charts. However, this also indicates that another significant rise could be possible in the medium to long term.
To support this bullish price prediction, AMBCrypto verified the Cycle change detector. This metric shows whether Bitcoin has moved into a bullish or bearish phase.
This metric also uses the correlation between price and supply in terms of profit. Looking at the chart below, a light blue line will appear if Bitcoin reaches its maximum price.
Source: Glaassnode
However, if the line is light red, it implies that the price is near the low. At press time, Bitcoin had passed the bottom.
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However, there was no blue light (top detector) in sight yet. Based on the signals discussed above, the BTC price could reach $101,500 between the third and fourth quarter of 2024.