Bitcoins bullish rally not expected to begin until late 2024 due to key factors
Recent fluctuations in the cryptocurrency market have been quite dramatic. The month of June started off strong, but by the second week, investor sentiment shifted from positive to cautious. Bitcoin (BTC) faced resistance at the $70,000 mark and entered a consolidation phase, hovering around $63,000.
According to a report from QCP Capital, Bitcoin’s price is expected to continue consolidating for the next couple of months, with a potential bull run not likely until late 2024. Despite some positive developments, the price action for BTC remains weak, dropping to as low as $64,300.
Short-term projections suggest that Bitcoin’s price will remain limited in the near future. Recent trading activity indicates a selling trend for Bitcoin call options expiring soon, signaling a lack of significant price movement in the immediate future. However, there is increased buying activity for call options from September to December, hinting at anticipation for major price swings later in the year.
Miners are feeling the pressure to sell due to high breakeven prices post the Bitcoin halving, leading to a continuous supply of Bitcoin entering the market and hindering price growth. Additionally, reports of a large influx of Bitcoin from the German government have added downward pressure on the price, causing panic and contributing to price drops.
The ETF market has also seen sell-offs, with outflows of over $500 million from spot Bitcoin ETFs in the past week, indicating a lack of confidence among institutional investors. Despite the bearish sentiment, positive developments such as MicroStrategy’s significant BTC purchase and BitMEX CEO Arthur Hayes’ optimistic macroeconomic narrative have the potential to boost market confidence.
As of now, Bitcoin is trading at $64,240, showing a slight gain in the last 24 hours but a 3% drop over the past seven days. Analysts predict a delayed bull run for Bitcoin, with significant movement expected by the end of the year. The consolidation phase may extend until September 2024, based on historical data pointing towards a stabilization period crucial for the next bullish breakout.
