A widely followed crypto investor thinks Bitcoin’s (BTC) old cyclical pattern, based on its four-year halving schedule, is no longer valid.
Pseudonymous analyst Jack Sparrow tells According to his 251,100 followers on the social media platform
However, according to Jack Sparrow, things may be different for Bitcoin this time as he believes BTC has entered its maturation phase as an asset.
“I think we ended a major period of behavior (early to date) when the ETFs (exchange-traded funds) came online and Bitcoin matured as an asset, perhaps even as early as 2018 when CME (Chicago Mercantile Exchange) futures came online .
My Gann-based cycles suggest that the old behavioral cycle will end in April of this year, just shortly after the ETFs launch and closer to when the big old GBTC (Grayscale Bitcoin Trust) arbitrage is fully unwound.”
As Bitcoin matures as an asset, the analyst emphasizes that it “only makes sense” that BTC’s price action will see drastic changes compared to previous cycles.
“The next cycle will be one about viability as a technology, about storing value and about integration into the real world, beyond speculation, as the battle to make it the default asset of the treasury.”
The analyst notes that Bitcoin is likely to behave much like stocks where deep-pocketed investors shake up the market in an attempt to collect cheap coins.
“New cycles begin with accumulation. Consider how markets look for liquidity to accumulate. No one is your friend, they want your coin, if Bitcoin is important enough they will figure out a way to get it.”
According to the trader, September will be crucial for the crypto king determine whether BTC will witness bullish or bearish price action in the coming months.
“In my opinion, September is the month in which the upward trend is strengthened or confirmed. It sets the main trend from March to June.
This corresponds to the seasonality, cycles AND the cutting cycle which is either bullish or bearish. Decisive.”
For now the trader say BTC needs to recover and retest a key level like support.
“$61,000 remains an important level to gain/hold for continued higher and likely retesting.”
At the time of writing, Bitcoin is worth $58,490, down more than 1% on the day itself.
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Generated image: Midjourney