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Bull market remains strong as Bitcoin and altcoins eye gains

GrafaGrafa2024/08/23 01:55
By:Liezl Gambe

The current cryptocurrency bull market, which began around two years ago, appears to be roughly halfway through its cycle.

This observation is based on Bitcoin (CRYPTO:BTC) and altcoin performance trends, as well as key historical data.

While some altcoins, including Ethereum (CRYPTO:ETH), have underperformed and delayed a full altcoin season, the broader market's progression hints at potential gains ahead.

In 2022, the crypto market faced significant challenges with major collapses such as FTX (CRYPTO:FTT), Celsius (CRYPTO:CEL), and Three Arrows Capital (3AC), leading to sharp declines in asset prices.

Bitcoin (BTC) fell to $15,409, Ethereum (ETH) to $1,065, BNB (CRYPTO:BNB) to $248.60, and Solana (CRYPTO:SOL) to $7.70.

This downturn likely marked the bottom of the bear market, with early 2023 showing a strong price recovery and the start of a new bull cycle.

Historically, crypto market cycles last approximately three years, and the current cycle is about 640 days in, suggesting it is around halfway through.

Bitcoin's recent halving event, which usually drives significant price increases, occurred earlier this year, with BTC reaching an all-time high even before the halving.

This indicates that the bull market might still have room for further growth.

Historical trends show that Bitcoin's price has more than doubled during each halving year.

In 2012, the price surged by 2.52 times, followed by 2.26 times in 2016, and 4.05 times in 2020.

With Bitcoin starting 2024 around $42,208 and reaching $73,750 in March, further price increases to between $80,000 and $85,000 could be expected as the cycle peaks.

Ethereum’s performance, however, has been underwhelming compared to its 2021 run.

Despite spot Ethereum ETFs' approval, ETH's dominance has declined from 18.80% to 15%.

Altcoins like BNB are exceptions, having surpassed previous all-time highs, but the delay in the altcoin season has been noticeable.

Meme coins and celebrity involvement are two indicators suggesting the bull market may still have legs.

Recent meme coin returns have been significant, and celebrity endorsements continue to influence market dynamics.

Additionally, Google Trends shows reduced retail interest, suggesting the market has not yet peaked.

Historically, bull markets are marked by a surge in retail investor activity, which might still be on the horizon.

Metrics like the Long-Term Holder Realized Profit/Loss Ratio from Glassnode indicate that profit-taking has decreased, similar to patterns observed before previous uptrends.

If past trends are a guide, Bitcoin and other cryptocurrencies might see new highs as this cycle progresses.

Despite the volatility and risks, several indicators point to continued growth potential in the current bull market.

At the time of writing, the Bitcoin price was $60,785.76.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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