Bitcoin recently took a dive to around $112,000, but some analysts believe this isn’t the end of the bull run. Instead, they see it as a necessary part of a larger upward trend.
Understanding the Bitcoin Cycle
According to crypto analyst Stockmoney, the Bitcoin price cycle typically unfolds in a few stages:
- The Pump: Bitcoin’s price rises, and large investors (whales) cash in their profits.
- Another Pump (Low Volume): The price continues to climb, but with less trading activity. Smaller investors try to lock in their gains.
- The Crash: This leads to a lot of positions with unrealized profits and open futures contracts, creating a liquidity crunch. This often happens after periods of slow price increases.
Stockmoney argues that the recent crash to $112,000, following a high of $117,000, is exactly this type of liquidity-releasing event. He points out that while it might seem negative, it’s actually beneficial for market makers, who profit from buying during dips. He believes this cycle will repeat.
Buy the Dip? Analysts Weigh In
Several analysts are encouraging investors to take advantage of the dip.
Analyst Ali Martinez suggests buying now, anticipating a rise to $130,000, which would be a new all-time high. He’s looking for signs of buying pressure to confirm this.
Another analyst, Titan of Crypto, is focusing on the Kijun level around $112,600. He sees this as a crucial support level that could determine Bitcoin’s next move, potentially the last shakeout before a major price increase.
At the time of writing, Bitcoin is trading around $112,600. Whether this is truly the bottom or just another bump in the road remains to be seen.
