Bitcoin has long been a focal point for investors as it exhibits cyclicality, transitioning between bull and bear trends. According to CryptoQuant analyst Datascope, Bitcoin is currently in the bull market phase.
This phase is referred to as the 'orange zone,' indicating that although the market has not yet peaked, upward momentum still dominates. Datascope's analysis reveals the evolving Bitcoin bull-bear market cycle indicator, which is designed to help investors identify key market trends and make informed decisions.
Bitcoin Market Cycle: Current Status and Investor Outlook
The bull-bear market cycle indicator relies on two moving averages: a short-term 30-day average and a long-term 365-day average. The crossing of the short-term average with the long-term average is seen as a key signal that may indicate a transition of the market to a peak period.
However, Datascope currently shows that no such crossing has occurred, indicating that while the market is on an upward trajectory, there is still significant room for growth before reaching a potential peak.
The analyst explains that in the current bull market, Bitcoin's price trend reflects strong momentum, providing opportunities for investors. However, this phase also requires strategic vigilance.
Datascope's analysis also emphasizes the importance of being prepared for adjustments when prices approach the 'red zone' (as shown above), a phase associated with increased risk. The analyst pointed out:
As long as the 30-day bull-bear market cycle indicator moving average remains above the 365-day bull-bear market cycle indicator moving average, the long-term outlook will remain optimistic. However, as prices approach the red zone, the risk of a pullback may increase. Therefore, it is crucial for investors to remain cautious during this period and consider taking profits when necessary.
Key points for investors to note
Datascope advises that investors hoping to take advantage of Bitcoin's ongoing bull market should focus on strategic entry and exit points. The analyst added:
Although the current bull market momentum is strong, it is vital to consider market volatility and strategically monitor price trends. Tracking key signals like moving average crossovers can help investors identify opportunities more effectively during this period.
Meanwhile, after Bitcoin's price re-broke the $100,000 mark yesterday, a noticeable rebound has occurred recently. At the time of writing, the asset's trading price is $101,639, having risen by 1.9% over the past day.
According to renowned cryptocurrency analyst Captain Faibik, due to BTC's recent breakthrough of the $101,000 price level, it has opened the door for further upward movement to $110,000.
$BTC seems likely to rebound soon and may test the key resistance level of 101k again.
Once the key resistance is cleared, the next target is likely to be $110,000.