Bitcoin (BTC) is currently under intense scrutiny as experts debate its future. Analysts, like CryptoQuaint’s “Yonsei_dent,” are closely watching the “Supply in Profit” indicator—a key measure of how much of Bitcoin’s circulating supply is currently profitable. This indicator, known for signaling the end of bullish trends, has recently become a focal point for investors.
Bitcoin has faced significant price drops, including a 21% decrease in May and a further 16% decline more recently. Currently trading around $61,500, Bitcoin’s performance is under scrutiny alongside a notable drop in the greed index, reaching its lowest since September 2023.
These developments have raised concerns about the sustainability of the current bull market.
What Makes 2024’s Bitcoin Cycle Different?
Despite recent setbacks, the 2024 Bitcoin bull run achieved an impressive milestone with an all-time high of $73,000 on March 14, 2024. Analysts attribute this rapid rise to increased institutional adoption and the introduction of Bitcoin ETFs.
Matthew Kaye from Intuition Systems sees this growth as a sign of market maturity, bolstered by strong institutional support and improved accessibility through ETFs.
Technical Insights: Mixed Signals for Bitcoin
Amidst price fluctuations, technical analysis by experts like Jelle presents a nuanced view. Bitcoin’s pattern of higher highs and higher lows suggests continued bullish momentum, hinting at a possible consolidation phase before another upward move. Jelle predicts Bitcoin could reach $63,500 by the week’s end, resembling the “Red Monday, Green Week” trend.
While indicators point towards a potential end to the bull run by September, the intricate dynamics of the 2024 cycle and bullish technical signals provide a more comprehensive perspective. The interaction between market metrics, institutional involvement, and evolving investor sentiment will shape Bitcoin’s trajectory in the months ahead.
Read Also: Is XRP Headed for a Deeper Crash? Demand Slumps as Market Turns Bearish
So, Bitcoin roller coaster or smooth sailing ahead? Place your bets.
