Cryptocurrency analytics firm Alphractal has made predictions about the future of Bitcoin in a statement. Here are the details. Recently, cryptocurrency analytics firm Alphractal gave a cautious assessment of the state of Bitcoin, suggesting that the world's largest cryptocurrency may be entering a new recession.
In its analysis, Alphractal notes that Bitcoinâs proprietary indicator and the Trend Signal Output Profit Spent Ratio (SOPR), are two indicators that have played a vital role in determining market trends throughout its history.
Alphractal analysts combined the SOPR indicator with simple and exponential moving averages (EMA and MA) to filter out the noise of entry and exit signals more clearly, and the company has incorporated them in identifying market cycles since 2015.
According to Alphractal analysts, they noticed that the chart in 2024 has shown an unusual pattern, with a SOPR signal breaking the important level of 1.015, which usually signals a prolonged bearish trend.
Three Upcoming Scenarios for Bitcoin Price
However, when considering other technical indicators along with the current SOPR downturn, analysts have outlined three scenarios to watch out for in the coming Bitcoin price:
All-time high: Alphractal says Bitcoin could hit a new all-time high this year, similar to the peak in November 2021. However, recent data suggests the trend is reversing into a bear market.
Bear Market Has Started:Â If the second SOPR signal fails to occur, it means the bear market has started in March 2024 and continues to decline.
Optimistic Re-Accumulation: This indicator could turn bullish again, signaling an accumulation phase reminiscent of the 2019-2020 period. This could potentially take Bitcoin to new record highs, but this scenario could take months to play out.
