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Bitcoin’s ongoing recovery, reclaiming the $62,000 price mark once again today, has sparked renewed optimism in the cryptocurrency community.
According to another analysis According to CryptoQuant analyst Crypto Dan, the current market is still in the middle of a bull cycle, with promising long-term prospects for Bitcoin holders.
While the market has faced some short-term turmoil, leading indicators suggest that more gains could be on the horizon.
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Bull Run is still a work in progress
Crypto Dan’s insights, shared on the CryptoQuant QuickTake platform, highlight how Bitcoin’s current movement mirrors patterns seen in previous bull cycles. Specifically, Dan noted that long-term investors made profits twice during the bull markets of 2013 and 2020.
He also noted that the 2017 market peak was different, as it lacked the adjustments of the same period in other cycles. Dan suggested that if we follow the patterns of 2013 and 2020, the current market may be poised for another major rebound.
In addition to comparing cycles, Dan emphasized the global macroeconomic situation, specifically the recent trend of interest rate cuts by central banks around the world.
He explained that while liquidity may take several months to fully return to the markets, prices usually move before these developments based on investors’ expectations.
This proactive move could pave the way for significant price increases by 2025, giving long-term investors the potential for significant gains. The analyst advised:
If you “invest” with a large frame rather than a short-term image, you are likely to get a much better result.
Bitcoin is bouncing back, and Coinbase Premium signals accumulation
Meanwhile, Bitcoin showed signs of recovery after falling to $58,000 earlier in the week. At the time of writing, the asset is trading at $62,080, representing a 2.4% increase over the past 24 hours.
This recovery has been met with positive sentiment from the cryptocurrency community, especially as other indicators point to the continued accumulation of Bitcoin.
Another CryptoQuant analyst, Avocado Onchain, offered more Visions In Bitcoin price movements, with a special focus on Coinbase Premium, an indicator that measures the difference between Bitcoin prices on Coinbase and other exchanges.
Coinbase Premium dropped to -100 points, which is typically a bearish sign, Avocado explained. However, the price of Bitcoin has since rebounded, indicating a positive outlook.
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According to the analyst, historically, during bull markets, Bitcoin price tends to bounce back after Coinbase Premium drops below -50. This pattern has held true over the past year, with Bitcoin consolidating within a wide price range over the past eight months.
Avocado noted that in a bear market, such negative premiums would normally lead to panic selling, but that is not the case now. Instead, the data suggests that big players may be accumulating Bitcoin at lower prices, suggesting that the bull market “may not be over.”
Featured image created with DALL-E, chart from TradingView