Bitcoin’s Current Cycle: Midpoint or Mirage?

Bitcoin’s Current Cycle: Midpoint or Mirage?

As the cryptocurrency market heads into the volatile 2023 landscape, my favorite digital currency is stuck in a slow downtrend that has been ongoing since early June. The weekly chart shows lower highs and lower lows, leaving me wondering whether this is where we are headed next.

Ki Young Ju, CEO of CryptoQuant, offers valuable insights into the behavior of Bitcoin holders and miners through on-chain metrics, which are not commonly used by retail investors. One such metric is the UTXO (Unspent Transaction Output) age bands, which track the age distribution of unsplent Bitcoin.

The 3-month to 2-year age bands have historically exhibited sharper peaks and valleys in certain parts of the cycle. Currently, the Puell multiple indicates that miners are not in a position to take profit, which could be interpreted as positive.

The April 2024 halving event may have significant implications for the future of Bitcoin’s price action. Historically, hegemony events have resulted in an accumulation phase, then usually followed by another distribution phase after corresponding bull runs. If this pattern is accurate, it could mean that Bitcoin is poised to hit a very high price point in the near future.

Ki Young Ju stressed the importance of U.S. investors in driving Bitcoin’s price to new highs. The resurgence of BTC Coinbase spot volume dominance to early 2024 levels, comparable to before spot ETF approval, could be an indication of greater institutional support.

A rise in UAS currency standards may prompt further pushback. The involvement of investors may be the key to rekindling Bitcoin’s current phase, which is currently stuck in a deadlock.

Bitcoin investors may face a challenging reality in the near future as the halving event approaches. However, the CryptoQuant CEO’s opinion is that the market is not an absolute truth, and investing should only consider the current state of the industry.

For more information on Bitcoin’s current cycle and its implications, check out our article on “Bitcoin Price Prediction 2024: Will the Halving Event Spark a New Bull Run?” on CoinSeeks.com.