The bears continue to remain unstoppable as the majority of the cryptos, starting with Bitcoin, have been experiencing extreme selling pressure. All the bullish indicators have flipped to a large extent, which showcases less possibility of a trend reversal shortly. In addition, the BTC price correction, which is intensifying by the day, suggests that new lows may form in the coming days.
Having said that, do you see any reason to remain bullish on Bitcoin? Or is the star token still afloat amid its current bull run?
Bitcoin’s current volatility is within expectations. The rally in 2017 was no different than the current one, where the parabolic trend manifested major swings as it progressed. Therefore, this correction was much expected by many analysts, which could form the lows, plunging another 10% to 12%. As a result, when compared to history, the year’s path forward remains promising, as the realized cap of four age bands shows a similar deviation from previous years.
The realised cap is computed by each UTXO (unspent transaction output) based on the price when it was last moved. The 4-year band is considered with the halving event that occurs every four years. Therefore, the data from CryptoQuant shows that the Bitcoin market is undergoing a short-term overheating. Moreover, it suggests that retail investors have not fully entered the market and hence the rally has not reached the cyclical top yet.
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Therefore, there is more scope for an extended bearish action, which may drag the levels below $55,000 in the coming days. Here, new whales who may be ETF buyers may jump in to acquire BTC at an average above $56,000. Moreover, the Bitcoin macro index is constantly surging, which suggests a 2013-like similar rally could occur in the coming days.
Hence, the Bitcoin (BTC) price continues to be in the middle of a bull run, hinting towards a potential top by mid-2024 and also a second top in 2025.
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