The Bitcoin bull market is entering its final phase, with a gradually declining risk tolerance of investors and increasing selling pressure.
Although investors still record profits, the benefits from each price increase are gradually decreasing. It is expected that there will be two more recoveries before selling pressure exceeds demand, leading to market corrections.
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The current Bitcoin bull market has entered its final phase with signs of reduced risk.
Data shows that the peak of important indicators has been lower recently.
Forecasts suggest two final price increases before the market enters a correction cycle.
What phase is the Bitcoin bull market in?
The Bitcoin bull market has entered its final phase, as investors' risk tolerance decreases and selling pressure begins to increase.
Analyst Axel Adler Jr. from CryptoQuant suggests that this gradual decline trend signals the end of the current price increase cycle. Tracking indicators show that the highest peaks occurred in March and December 2024, but recent peaks have been lower, reflecting strong selling pressure from holders. This negatively affects the upward momentum of the cryptocurrency market, especially Bitcoin.
Why are the profits from Bitcoin price increases decreasing?
The marginal profitability from each price increase is decreasing as investors begin to take profits and risk appetite declines.
Although the market still has profits, the pace of price increases is no longer as strong as before. This indicates that investors are becoming more cautious, affecting liquidity and purchasing power. The phenomenon of active holders selling also reduces the momentum of increases, signaling a potential weakening of the bull market in the near future.
What forecasts are there for the next developments in the Bitcoin market?
Based on analysis and expectations regarding monetary policy, the market is expected to experience two final price increases before entering a correction phase.
Specifically, with expectations that the Federal Reserve will lower interest rates twice in 2024, Axel Adler Jr. suggests that the cryptocurrency market may experience two more recoveries. However, after that, selling pressure will exceed demand, leading to the possibility of the Bitcoin market experiencing a bearish or significant correction cycle.
Increasing selling pressure and a declining risk appetite indicate that the current Bitcoin bull market is heading towards its final phase.
Axel Adler Jr., CryptoQuant, August 2024
What factors influence the rise and fall cycles of Bitcoin?
Monetary policies and investor behavior decisively influence the rise and fall cycles of Bitcoin.
The Fed's interest rate plays a crucial role in influencing capital flows into cryptocurrencies. Additionally, profit-taking pressure and selling actions from large holders directly impact liquidity and price trends. Monitoring on-chain indicators and market sentiment is essential for more accurate forecasting.
Frequently asked questions
How long can the Bitcoin bull market last?
With current analysis, the Bitcoin bull market may end in its final phase after two expected price increases this year.
How does selling pressure from holders affect Bitcoin prices?
Significant selling pressure from holders occurs when they take profits, creating supply that exceeds demand, causing prices to drop or adjust.
How does the Fed's interest rate policy affect the cryptocurrency market?
The Fed's interest rate cuts often stimulate capital flows into cryptocurrencies, supporting upward trends, but conversely can lead to market declines when interest rates rise.
How to accurately forecast Bitcoin cycles?
It is necessary to combine technical analysis, on-chain data, and monitor monetary policy along with investor sentiment.
What indicators are used to measure the health of the Bitcoin bull market?
Profit-risk indicators, trading volumes, and trends of large holders are important indicators.
Source: https://tintucbitcoin.com/bitcoin-du-bao-hai-dot-hoi-cuoi/
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