Originally published on: August 10, 2024
The latest indicator tracking Bitcoin’s bull-bear market cycle has shifted to signal bullish conditions, bringing optimism to investors after a rough patch. Following a few days of red flags as Bitcoin’s price dipped to levels not seen since February, the indicator has now turned green.
According to CryptoQuant founder CEKi Young Ju, most on-chain cyclical indicators for Bitcoin are now pointing towards a bull market. This sentiment was echoed by pseudonymous trader PlanB, who reassured followers that Bitcoin is still in a bull market despite recent fluctuations.
After dropping to $49,751 on what is now being referred to as “Crypto Black Monday,” Bitcoin struggled to reach the key $60,000 mark until recently. Now, with the price holding steady at $60,732 at the time of writing, hopes are high for a bullish trend.
It’s worth noting that the bull-bear market cycle indicator had not shown a bear signal since January 2023, making this recent flip particularly significant. This change in sentiment comes after the Crypto Fear & Greed Index hit an extreme score of 17 on August 6, only to bounce back to a neutral reading of 48 shortly after.
Some traders are interpreting these rapid shifts as a possible bear trap, where savvy traders manipulate prices to catch short-sellers off guard. While some analysts predict a bullish trend following this dip, others like 10x Research’s Markus Thielen are eyeing a potential entry point in Bitcoin’s low $40,000 range.
With conflicting opinions on the horizon, crypto enthusiasts are closely monitoring key support levels at $52,000 and $46,000, as highlighted in a recent report from Ark Invest. As veteran trader Peter Brandt compares Bitcoin’s recent decline to previous bull market cycles, speculations about the next move continue to abound.
While uncertainties remain, one thing is clear – the crypto market is as dynamic as ever, with traders and investors keeping a close watch on Bitcoin’s every move. Stay tuned for more updates on this evolving landscape in our weekly Crypto Biz newsletter.