Crypto Insights: The End of the Bitcoin Bull Run?
Bitcoin Positioned for Explosive Growth in Remaining 20 Weeks of Current Cycle, According to Experts
A look at the potential closing chapter of Bitcoin's current bull cycle based on historical data and market trends.
Want to know what's happening with Bitcoin? Let's dive in!
Bitcoin Cycle: Towards Its Final Phase?
Multiple analysts suggest that Bitcoin may be entering the final leg of its current bull cycle, drawing comparisons from past market patterns.
Analyst Michael van de Poppe observes that Bitcoin has absorbed most of the recent liquidity after corrections, hinting at an impending breakout. Another analyst, Jelle, predicts that, following tradition, the current bull cycle could last for around 20 more weeks.
At the time of writing, Bitcoin trades at $104,786, showing a 1.02% increase over the past 24 hours. Its growth in the last week and month stands at 0.3% and 6.7%, respectively [CoinGecko].
Crypto Markets: Volatility and Options Expiry
Bitcoin took a plunge to $100,372 due to a perfect storm of macroeconomic pressures, liquidations, and political tensions. Over $1 billion in crypto positions were liquidated, with the largest single liquidation amounting to over $16 million [Lookonchain].
As much as $3.8 billion in Bitcoin and Ethereum options are about to expire today, with a put-call ratio of 0.70 and a max pain point of $105,000. While Federal Reserve is expected to keep interest rates at its next meeting on June 18, expectations for cuts later in the year are rising [CME FedWatch Tool].
A weaker jobs report could potentially speed up rate reductions, which some analysts believe could amplify Bitcoin's bullish momentum.
Politics and Uncertainty: Tension Escalates
Rising trade tensions between Donald Trump and Elon Musk have added to the confusion in financial markets. Musk's criticism of Trump's tariff policy, coupled with threats to cut government contracts, has sparked concerns about a possible recession later this year.
Long-term holders have been selling their positions, adding to the downward pressure on the price of Bitcoin. According to Glassnode, holders who acquired Bitcoin more than 155 days ago have started offloading their positions. If there's no strong price catalyst, further corrections may ensue.
What Lies Ahead for Bitcoin?
While there are strong indications for Bitcoin's bull run to persist, accurately predicting the end of its cycle is difficult. It is essential to keep track of market conditions, technical indicators, on-chain data, and macroeconomic factors to gain a better understanding of the market's trajectory.
- Despite certain analysts suggesting that Bitcoin might be nearing the end of its current bull cycle, another analyst predicts that the bull run could continue for around 20 more weeks.
- As Bitcoin and Ethereum options worth $3.8 billion are set to expire today, a weaker jobs report could potentially speed up Federal Reserve's interest rate reductions, which some analysts believe could amplify Bitcoin's bullish momentum.
- The rising trade tensions between Donald Trump and Elon Musk, along with concerns about a possible recession later this year, have added to the uncertainty in the finance and technology sector, with long-term Bitcoin holders starting to sell their positions.
