The Continued Momentum of Bitcoin’s Rally
According to a recent report shared by ByBit with BeInCrypto, Bitcoin’s rally seems to have enduring momentum despite the currency’s struggles to surpass the $60,000 mark. The report offers a retrospective analysis of Bitcoin’s upward trend and provides insights into the potential for continued price increases in the future.
Bitcoin’s past performance is visualized by ByBit on a logarithmic scale, highlighting different cycles and long-term trends. Bull markets, defined as periods extending from the lowest to the highest point of each cycle, are clearly illustrated in the analysis.
The 2024 Bitcoin Bull Market Cycle Analysis
The analysis identifies three main bullish phases in Bitcoin’s history: 2012-2014, 2015-2018, and 2019-2022. The current upcycle, which began in late 2022, is still ongoing and shows promising signs of growth.
Starting in November 2022, Bitcoin began its ascent from a low of $15,800, after hitting a bottom since FTX. As of now, Bitcoin has spent 624 days in this bull market, reaching a peak of $73,000 in March 2024, marking a more than four-fold increase from its initial lows.
Despite the significant growth, it falls short of the 20x surge seen in the previous 2019-2022 cycle. However, with the average length of past cycles being 956 days, there is still approximately 350 days of potential growth left in this cycle.
The Behavior of Bitcoin Whales and Long-Term Holders
Glassnode’s report highlights the commitment of Bitcoin whales to holding onto their assets. The Accumulated Trend Score (ATS), which measures changes in weighted balances across the market, recently reached an all-time high of 1.0, indicating a trend towards asset accumulation among investors.
Moreover, long-term holders (LTH) have shifted their strategies from selling near peak prices to maintaining their investments. Over the past three months, LTHs have accumulated over 374,000 BTC, stabilizing or even increasing their control over network assets.
Additionally, institutional investors, as noted by IntotheBlock senior researcher Juan Pellicer, are increasingly interested in accumulating Bitcoin. Their buying activity could help counterbalance selling pressure and boost the confidence of long-term holders in the market.
In conclusion, the data suggests that Bitcoin’s rally may still have room for growth, supported by the behavior of whales, long-term holders, and institutional investors. Despite concerns about diminishing returns in each bull market cycle, the resilience of long-term holders and the potential for further price increases indicate a positive outlook for Bitcoin’s future.
