Bitcoin Faces Longest Sideways Movement in Halving Year
As Bitcoin continues its prolonged consolidation phase, Ki Young Ju, Founder and CEO of CryptoQuant, has warned of a potential milestone. If a Bitcoin bull Market does not emerge within the next two weeks, 2024 could go down in history as the year with the longest sideways movement in a halving year.
His analysis comes after 285 days into the year, a period where Bitcoin has remained range-bound despite early optimistic expectations. The lack of a significant Price Surge following the halving event has left many in the Crypto community anxious about Bitcoin's performance.
Bitcoin's Deviation from Historical Bull Run Patterns
Young Ju highlighted a chart showcasing Bitcoin's historical bull runs in prior halving years, indicating a deviation in the current price action. While Bitcoin briefly rallied earlier in the year, it has struggled to maintain upward momentum and has mostly traded sideways since reaching its pre-halving peak in March.
Illia Otychenko, Lead Analyst at CEX.IO, noted that Bitcoin's post-halving consolidation phase in this cycle significantly differs from previous ones. Bitcoin hit a new all-time high before the halving in March, causing on-Chain indicators to deviate from traditional patterns.
By July, 62% of the 13 key on-chain indicators tracked by Capricole Investments had entered bearish territory, signaling a potential shift in the market cycle. Otychenko suggested that Altcoin seasons and bull runs in this cycle might follow different timelines compared to prior years.
Market Stability Amid Economic Indicators
Currently, Bitcoin is trading flat at $61,180, with Ethereum seeing a slight increase to $2,415. This stability follows a brief dip in Bitcoin's price to near $60,000 levels due to mixed economic signals.
Headline CPI inflation fell from 2.5% in August to 2.4% in September, missing the Consensus forecast of 2.3%. This unexpected reading led to a temporary market correction. Additionally, the latest jobless claims report indicated significant weekly increases, suggesting weakness in the labor market.
ETF flows have also influenced market dynamics, with Bitcoin spot ETFs experiencing a net outflow of $121 million, while Ethereum spot ETFs saw a modest net inflow of $3.06 million.
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Overall, the Crypto Market is closely watching Bitcoin's price action and potential for a bull market to break the prolonged sideways movement. With economic indicators influencing short-term trends, investors are keeping a close eye on developments in the market.
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