Could Bitcoin be gearing up for another epic bullish cycle in 2024? That’s the burning question on the minds of crypto analysts and traders as a fascinating pattern from past market cycles has tongues wagging. If this trend holds true, the largest cryptocurrency could be in for a wild ride next year.
The theory revolves around Bitcoin experiencing a 21-day correction phase after hitting new all-time highs, followed by a spectacular rally. This pattern played out in both the 2017 and 2020 bull runs. As the pseudonymous analyst Moustache says when looking ahead to 2024, – “My body would be ready.”
Adding fuel to the speculation fire is veteran trader Scott Melker, better known as “The Wolf Of All Streets.” Melker points out that during Bitcoin’s monumental surge to $20,000 in 2017, the asset went through seven double-digit percentage corrections ranging from 27% to 41%. This is simply par for the course in bull markets according to the seasoned analyst, who states “nothing goes straight up, regardless of your favorite narrative.”
The potential for a 2024 replay of the 21-day correction window isn’t just hopium though. Respected analyst Michaël van de Poppe sees merit in the idea based on current market conditions. He believes Bitcoin’s bearish divergence remains intact and that the leading crypto is nearing a market bottom, with the pullback being relatively contained so far.
Van de Poppe attributes this month’s downturn to macro factors like this week’s Federal Reserve meeting, the first rate hike by the Bank of Japan since 2007, and ongoing issues surrounding the Grayscale Bitcoin Trust. Once these overhanging risks subside, the path could open for BTC’s next mega bull phase and the preceding 21-day shakeout.
Short-term Overheating In The Bitcoin Market?
Not everyone is operating with 2024 bull market blinders on, though. Ki Young Ju, CEO of on-chain analysis firm CryptoQuant, recently stated the Bitcoin market is exhibiting signs of “short-term overheating.” However, Ju doesn’t see this as a cyclical peak, noting that retail investors have not fully jumped back in yet and that demand from institutional Bitcoin ETF products bears watching.
If a 30% peak-to-trough decline were to materialize based on Ju’s analysis, Bitcoin could find support around $51,000. Interestingly, he calculates that new whale investors, potentially exchange-traded funds, entered around the $56,000 level on average during the latest rally.
Only time will tell if Bitcoin’s legendary 2024 will mimic the historic boom-bust-boom patterns from 2017 and 2020. But already the crypto community is alive with spirited debate and extensive charting as everyone attempts to call the next major market move.
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