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The continued recovery of Bitcoin, which regained its price of $62,000 today, has led to renewed optimism in the cryptocurrency community.
According to a recent analysis by CryptoQuant Analyst Crypto Then the current market is still in the midst of a bull cycle, with a promising long-term outlook for Bitcoin holders.
While the market has seen some short-term turbulence, key indicators suggest that more gains may be on the horizon.
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Bull Run is still going on
Crypto Dan’s insights, shared on the CryptoQuant QuickTake platform, highlight how Bitcoin’s current movement reflects patterns seen in previous bull cycles. Dan specifically noted that long-term investors made profits twice during the 2013 and 2020 bull markets.
He further pointed out that the market peak differed from 2017, missing the same period adjustments in other cycles. Dan suggested that if we follow the patterns of 2013 and 2020, the current market could be poised for another significant rebound.
In addition to the cycle comparison, Dan highlighted the global macroeconomic situation, in particular the recent trend of interest rate cuts by central banks worldwide.
He explained that while it may take several months for liquidity to fully return to the markets, prices typically anticipate these developments based on investor expectations.
This anticipatory move could pave the way for significant price increases by 2025, giving long-term investors the potential for substantial gains. The analyst advised:
If you ‘invest’ through a big framework rather than a short-term view, you are more likely to get a much better outcome.
Bitcoin bounces back, Coinbase Premium points to accumulation
Meanwhile, Bitcoin has shown signs of recovery after falling to $58,000 earlier this week. At the time of writing, the asset is trading at $62,080, marking an increase of 2.4% in the last 24 hours.
This recovery is being met with positive sentiment by the crypto community, especially as other indicators point to Bitcoin’s continued accumulation.
Another CryptoQuant analyst, Avocado Onchain, provided further insights in Bitcoin price movements, specifically focusing on the Coinbase Premium, an indicator that measures the difference between Bitcoin prices on Coinbase and other exchanges.
Avocado explained that Coinbase Premium dropped to -100 points, which is typically a bearish signal. However, Bitcoin’s price has since recovered, indicating a positive outlook.
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According to the analyst, historically during bull markets, Bitcoin’s price has tended to bounce back after Coinbase Premium falls below -50. This pattern has held over the past year, with Bitcoin consolidating within a wide price range over the past eight months.
Avocado noted that such negative premiums would typically lead to panic selling in a bear market, but that is not the case now. Instead, the data indicates that larger players can accumulate Bitcoin at lower prices, indicating that the bull market “may not be over yet.”
Featured image created with DALL-E, Chart from TradingView
