In the short term, Bitcoin’s price has experienced a significant upward momentum, surging beyond the temporary resistance level, with its sights set on reaching higher targets as soon as possible. As the year progresses toward its conclusion, experts anticipate an uptick in both trading volume and market volatility, factors that are likely to propel the price to new highs.
In the past few hours, the cryptocurrency markets experienced a significant surge, propelling the price of Bitcoin beyond the critical $36,000 milestone. This momentum led to Bitcoin reaching new yearly highs, exceeding $38,000, and it is presently consolidating these gains. This notable uptick in bullish sentiment has shifted market dynamics, leaving investors highly optimistic about the upcoming trend.
Bitcoin: Transitioning from Bear Market to Bull Cycle
Following the 2022 bear market, traders were eagerly anticipating a change in the market trend, which appeared to materialize at the beginning of the final quarter of the year. Notably, according to renowned analyst Michael van de Poppe, Bitcoin has now completed the accumulation phase and entered the initial phase of the bull cycle.
#Bitcoin has ended the accumulation phase and enters the first part of the bull cycle
This is the first year of the bull cycle, as it's quite clear that we've finished the bear market.
Altcoins are heating up and Bitcoin has broken through the $30,000 barrier. What's next?… pic.twitter.com/uPgJG9Mg3o
— Michaël van de Poppe (@CryptoMichNL) November 8, 2023
As per the chart provided, the analyst points out that the cryptocurrency markets typically go through specific cycles, a pattern common in the crypto space. These cycles typically span four years and can be categorized as follows:
1. Bear Market (depicted in red)
2. Accumulation (depicted in green)
3. Bull Phase 1 (depicted in purple)
4. Bull Phase 2 (depicted in green, often referred to as the mania period)
Crypto Market Outlook: Transitioning from Accumulation to Bull Phase
The crypto space endured a bear market that extended from November 2021 to November 2022, ultimately hitting rock bottom by the year’s end. Subsequently, the markets entered an accumulation phase, which is expected to conclude at the end of the current month. Following this, a year of the first bull phase is anticipated to commence, during which Bitcoin’s price is projected to gradually climb but may not reach an all-time high. This phase typically unfolds in the second year of the bull market.
Simultaneously, there are high expectations for the performance of altcoins. As long as Bitcoin doesn’t experience a rapid price surge, altcoins are poised to maintain a stable trajectory with the potential to increase in value by a factor of 5 to 10. A similar trend has been observed with Chainlink, where the LINK/BTC pair approaches its all-time high, potentially indicating the arrival of a DeFi summer.
Overall, the crypto markets are predicted to experience substantial growth, with altcoins flourishing as Bitcoin’s dominance wanes. This shift could further accelerate the transition to the second phase of the bull cycle.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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