- Bitcoin has not hit the “alert” zone of hyper-growth yet in its current market cycle
- Gradual uptrend of the past eight months might accelerate after it does
Bitcoin [BTC] saw a strong bullish move on 15 April after the release of CPI numbers proved more favorable than expected. At press time, Bitcoin was trading just under $66k on the charts. However, it has been in a retracement phase since mid-March and is yet to beat the $66.9k high resistance formed a month ago.
Over the past 4-6 weeks, the bullish momentum has stalled, and fears of a deeper retracement have taken root. Bitcoin ETFs also saw nil or negative flows while speculative interest dwindled. In fact, fears of a miner sell-off were strong too.
Price fears might be unfounded
Source: Axel Adler on X (formerly Twitter)
In a post on X (formerly Twitter) crypto analyst Axel pointed out that we have not seen “true and rapid growth” for Bitcoin this market cycle. In previous cycles, whenever Bitcoin did experience this, they were marked in orange.
The quarterly price performance chart revealed periods where close to 75% gains were noted, but the bulls were unable to push beyond that. We have already seen Bitcoin breach its all-time high without going through hyper-growth, which makes for an extremely bullish scenario in the coming months.
The triple-tap on the 75% mark resembled the one from 2017. It is not guaranteed that we will have such a phase of growth, nor that it will last for months together like it did in previous cycles. However, investors must remember that the current cycle is likely young, and panic due to the scenarios outlined might seem trivial in a few months.
One fear that does not seem misplaced, outlined by a Core contributor
Bitcoin core contributor Matt Corallo outlined some reasons why he believes it is “hard not to see a bleak vision for Bitcoin.” According to him, the current, existential war is being waged to decide what Bitcoin is. He compared it to the block size wars of 2015-2017.
Read Bitcoin’s [BTC] Price Prediction 2024-25
“Back then it was about who got to decide what Bitcoin was, now it’s about what Bitcoin is” he wrote.
The analyst believes that Bitcoin as a tool of freedom to transact without oversight from a third party is under threat from endless KYC checks. This goes against the original vision, while centralization of mining is another concern.
Bitcoiners are too busy squabbling one another to battle against regulatory peril, he finally warned. Ergo, it will be interesting to see where BTC ends up after a few years.
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