Bitcoin has long been a central point of interest for investors due to its cyclical nature, transitioning between periods of bullish and bearish trends. From now on, Bitcoin is reportedly within a bull market phase, according to a CryptoQuant analyst known as datascope.
This phase, called the “Orange Zone,” indicates that bullish momentum prevails, although the market has not yet peaked. Datascope analysis sheds light on the evolution of the Bitcoin Bull-Bear Market Cycle Indicator, a tool designed to help investors identify key market trends and make informed decisions.
Bitcoin Market Cycle: Current Status and Investor Outlook
The bull and bear market cycle indicator is based on two moving averages: a short-term 30-day average and a long-term 365-day average. A crossing of the short-term average above the long-term average is considered a critical signal, which could mark the transition towards peak market period.
However, the absence of such a crossover, as revealed by Datascope, currently suggests that while the market is on an upward trajectory, there is still room for significant growth before reaching a potential peak.
The analyst explained that in the current bull marketBitcoin price movements reflect strong momentum, indicating opportunities for investors. However, this phase also entails the need for strategic vigilance.
Data scoping analysis also highlights the importance of preparing for corrections as prices approach the “red zone” (in the chart attached above), a stage associated with higher risks. The analyst noted:
As long as the 30-day Bull and Bear Market Cycle Indicator moving average remains above the 365-day Bull and Bear Market Cycle Indicator moving average, the long-term outlook remains positive. However, as prices approach the red zone, the risk of corrections may increase. Therefore, it is essential for investors to be cautious during this period and consider taking profits when necessary.
Key takeaways for investors
datascope suggested that investors looking to capitalize on Bitcoin’s potential bull market underway It should focus on strategic entry and exit points. The analyst added:
Although the current bull market shows strong momentum, it is vital to take market fluctuations into account and strategically monitor price movements. Following critical signals, such as moving average crossovers, can help investors identify opportunities more effectively during this period.
Meanwhile, Bitcoin has recently seen a notable rebound in price after recovering the price of $100,000 yesterday. At the time of writing, the asset is trading at a price of $101,639, rising 1.9% in the last day. According to renowned crypto analyst Captain Faibik, as BTC recently surpassed the $101,000 price level, it opened the door for a further rally to $110,000.
$BTC It looks like it will recover soon and may retest the crucial 101k resistance.
Once the critical resistance is broken, the next target is likely to be $110,000.
#Crypto #Bitcoin #BTC pic.twitter.com/19LwR6Mvf0
– Captain Faibik
(@CryptoFaibik) December 11, 2024
Featured image created with DALL-E, chart by TradungView Source: NewsBTC.com
