As Bitcoin continues its prolonged decline, CryptoQuant founder and CEO Ki Yong-joo believes that if a bull market does not emerge in Bitcoin (BTC) within the next two weeks, He warned that this year would be the longest period of sideways movement in six months. History of cryptocurrencies.
His comments came 285 days into 2024, the year in which Bitcoin remained range-bound for an extended period of time despite previous bullish forecasts.
Ki Young Ju's analysis reflects growing concern within the crypto community about Bitcoin's performance following the recent halving event. Typically, halvings are accompanied by large price increases due to reduced supply, but market participants are hopeful that 2024 will reverse that trend.
Zhu also shared a chart showing Bitcoin's historically consistent bull run during past halvings, highlighting how the current price trend deviates from established cycles. This chart shows that although Bitcoin briefly rebounded in early 2024, it has struggled to maintain upward momentum and has traded mostly sideways since reaching its pre-halving peak in March. It is shown that there is.
Meanwhile, Ilya Otichenko, chief analyst at CEX.IO, said: decryption Bitcoin is experiencing an extended post-halving consolidation phase this cycle, which is very different from previous cycles.
Notably, Bitcoin hit a new all-time high before its March 2024 halving, a rare event that caused several on-chain metrics to deviate from their traditional patterns.
Otichenko pointed out that by July 2024, 62% of the 13 major on-chain indicators tracked by Capricol Investments have entered bearish territory. He also notes that indicators such as long-term market inflation and dormant Z-scores reflect past market peaks, and that this cycle may not follow the typical path seen in previous years. He pointed out that it suggests that
“This does not necessarily invalidate established cycle theory,” Otichenko said. “However, it suggests that components of this cycle, such as altcoin seasons and bull markets, may have a different timeline than we are used to seeing.”
As of Friday afternoon European trading hours, Bitcoin was trading flat at $61,180, while Ethereum was up 0.5% at $2,415, according to data from CoinGecko. This stabilization comes after Bitcoin prices briefly fell to nearly $60,000 on Thursday, triggered by a series of various economic indicators.
Data on Thursday showed headline CPI inflation fell to 2.4% in September 2024 from 2.5% in August, slightly below the consensus estimate of 2.3%. The unexpected inflation rate led to a temporary correction in the market.
Adding to the market uncertainty, the latest jobless claims report showed the biggest weekly increase since July 2023, suggesting potential weakness in the labor market. This contrasts with September's strong employment report and complicates the outlook for future interest rate decisions.
Additionally, ETF flows are also fueling market dynamics, with the Bitcoin Spot ETF posting net outflows of $121 million, while the Ethereum Spot ETF posted net outflows of $3.06 million, according to SoSo Value data. recorded modest net inflows.
Edited by Stacey Elliott.
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