bitcoin price started the year with strong momentum, which was further boosted by the launch of spot ETFs (exchange-traded funds) in January. The leading cryptocurrency took advantage of the arrival of a new group of investors and reached a new all-time high of $73,737 in mid-March.
However, bitcoin has been slowing down in recent months and several investors and crypto enthusiasts are wondering if the bull cycle is over. The latest comment comes from a blockchain firm that has laid out a timeline of sorts for the flagship cryptocurrency’s uptrend.
bitcoin price down 12% from its halving price
In a new report on Platform x, crypto intelligence firm IntoTheBlock has x.com/intotheblock/status/1832433850191949937″ target=”_blank” rel=”noopener nofollow”>shared An insight into bitcoin's behavior during a halving year and how it influences the procession of the bull cycle. The fourth halving event, which occurred in April, saw miner rewards drop from 12.5 to 6.25.
Although the bitcoin halving is a theoretically bullish phenomenon, the months following the event have not been particularly positive for the leading cryptocurrency. According to data from IntoTheBlock, btc has fallen 12% from its halving value of $63,900.
While the current position of the market leader is somewhat better than pre-halving projections, it is still a cause for concern for several investors. However, btc’s disappointing performance post-halving may not be the end, as the price still seems to be far from its cycle peak.
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Source:x.com/intotheblock/status/1832433850191949937" target="_blank" rel="noopener nofollow"> IntoTheBlock/x
IntoTheBlock noted in its report that, from a historical standpoint, the average time between bitcoin's halving and the next peak is 480 days. This would put the cycle's peak at some point around the summer of 2025.
bitcoin price has been in a consolidation range for the past two quarters, hovering between $55,000 and $69,000. A sustained break above the $70,000 mark could signal the resumption of the bullish cycle.
When will the bullish cycle resume?
CryptoQuant CEO Ki Young Ju has x.com/ki_young_ju/status/1832333094231404576″ target=”_blank” rel=”noopener nofollow”>Transmitted A similar comment on the current state of the bitcoin bull cycle. According to the founder of the cryptocurrency, btc is only halfway through its bull cycle and “the retail bubble has not yet hit.” For context, the retail bubble refers to the phase in which there is a significant influx of retail investors into the market.
It is worth noting that the demand for btc in some markets, specifically the United States, appears to be declining at the moment. This trend is highlighted by the drop in Coinbase’s spot trading volume dominance, which has returned to pre-spot ETF issuance levels. Young Ju noted that the US demand for btc needs to recover if the bull cycle is to resume.
CryptoQuant CEO added:
I expect this in the fourth quarter, but I could be wrong.
At the time of writing, bitcoin is trading at around $54,000, up just 0.5% over the past 24 hours. Meanwhile, the market leader is down more than 8.5% over the past week, according to data from CoinGecko.
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The price of bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
