Bitcoin enthusiasts and traders have recently seen a glimmer of hope despite the continued decline as signs of a bull market resumption emerge.
CryptoQuant CEO Ki Young Ju pointed out that Bitcoin is still in the middle of a bullish cycle based on key data from the growth rate differential graph.
This chart tracks the relationship between Bitcoin's market cap and realized market cap, showing that Bitcoin is still in its growth phase. Current trends reveal that market capitalization is rising faster than the realized ceiling, which is a key indicator of a bull market.
Sorry, Bear, but #bitcoin We are still in the middle of a bullish cycle. https://t.co/QkaZx7wmAt pic.twitter.com/8lkIiRn1W7
— Ki Young-ju (@ki_young_ju) September 30, 2024
Historical cycles and growth patterns
The growth rate difference graph highlights clear trends from Bitcoin's past bull and bear cycles from 2013 to 2015. A bull market began in 2013 with a sharp increase in market capitalization, followed by a sharp correction in 2014 and a bear market phase.
This pattern repeated from 2016 to 2018, with a new bullish cycle beginning in 2016, peaking at the end of 2017, and then dropping into bearish territory throughout 2018. What is noteworthy is that in each period, Market capitalization growth A corresponding correction followed, as seen in the swing between the green (bullish) and red (bearish) zones on Young Ju's chart.
A further recovery began between 2019 and 2021, pushing Bitcoin to new heights in 2021. However, the subsequent decline in 2022 was further exacerbated by rising inflation and a broader market correction, sending Bitcoin back into a bearish cycle. The difference in growth rates has moved into the red zone, indicating an extended bear market phase.
New Bull Cycle Post 2023
Moving into 2023, the chart shows a reversal of the bearish trend. Bitcoin's Market capitalization begins to exceed the realization ceiling again. This move into the green zone signals the beginning of a new bullish cycle.
Recall that Yong Joo said in May that these growth patterns typically last about two years, suggesting the bull market could last until 2025 if current trends continue.
Unusual September performance
Interestingly, 2024 also marks a departure from Bitcoin's normal performance in September, a month historically associated with price declines. In contrast, Bitcoin Increase of 10% or more In September of this year, my expectations were exceeded.
Market analyst Ali Martinez noted that when Bitcoin ends September on a positive candlestick, it often paves the way for significant gains in the following months.
For example, following its strong performance in September, Bitcoin saw significant gains in October 2015 and October 2016, rising by 33.49% and 14.71%, respectively. This year's strong performance in September could similarly point to further upside as the market continues to grow, especially as Bitcoin is in the middle of its current bullish cycle.
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