Everyone is waiting for the bull period for Bitcoin. For this reason, there are those who spend the moment we live in preparation for the bull period. So what are the factors that will start the bull cycle? Let’s see our article.
Bitcoin bull cycle
Bitcoin is down 15 percent from its 2023 high. But the $40,000 level may be closer than you think due to a few key factors. There are recent regulatory pressures on cryptocurrency exchanges like Bitcoin, Coinbase, and Binance. Also, with the hawkish decisions of the Federal Reserve, Bitcoin faced sales. Based on the $31,000 level, it experienced a 15 percent decrease.
Still, Bitcoin has increased by 60 percent since the beginning of the year. It is above the $25,000 tech support level. Moreover, a new bull cycle could begin for a number of reasons. Here are those reasons.
BTC halving
There is a pre-programmed event that halves the supply of the cryptocurrency every four years. Bitcoin halving. The next Bitcoin halving will take place in April 2024. The previous three Bitcoin halvings (2012, 2016, 2020) have caused huge spikes in BTC prices. Bitcoin has broken all records. For example, BTC has increased by 276 percent since the previous halving in May 2020.
According to analyst Lark Davis, who expects Bitcoin to test the record high of $69,000 in the next 18-24 months, the market will likely be in an accumulation zone until the halving. One analyst even thinks the price will reach $160,000 by April 2024.
BlackRock Bitcoin ETF
BlackRock’s Bitcoin ETF application to the US Securities and Exchange Commission (SEC) is significant. It also increased confidence in a potential BTC price rally in the days leading up to the halving. The investment firm, which manages $8.5 trillion in assets, has a near-perfect ETF approval record with the SEC. The SEC’s deadline to respond to BlackRock’s application is around March 2024, a month before the halving. Many analysts are of the opinion that the SEC approval could double Bitcoin’s post-halving bullish expectations. “You watch game theory in action,” says analyst Crypto Tea.
“BlackRock understands that Bitcoin’s halving is less than a year away. New supply will decrease as demand continues to rise due to worldwide hyperinflation. They are asset managers. That’s why they need to catch up with Bitcoin’s performance before their competitors.”
BTC dominance rises
The SEC also has its latest crackdown on crypto exchanges Binance and Coinbase. It has put many top altcoins under stress, especially those that are considered “unregistered securities”. This coincided with Bitcoin’s dominance of the crypto market surpassing 50 percent for the first time in two years.
In other words, capital is moving from altcoins to Bitcoin. Because Bitcoin is not considered a “security” by the SEC. As such, BTC can be viewed as a “safe” investment compared to the more than 60 cryptocurrencies that are considered “securities” by the regulator. MicroStrategy co-founder Michael Saylor predicts that this will increase the market cap of BTC to 80 percent of the total crypto market in the coming years. Saylor says:
“Regulatory clarity will drive Bitcoin adoption by removing the confusion and anxiety holding institutional investors back. Bitcoin dominance will continue to grow as the Crypto industry rationalizes around BTC and becomes mainstream.”
BTC price “bull flag”
Technical data indicates that Bitcoin has drawn a clear bull flag formation on its long timeframe charts. It also indicates that the overall recovery rally will continue to the upside.
A bull flag is dissolved after the price rises above the upper trendline and rises as high as the previous uptrend. As a result, Bitcoin’s bull flag target is approaching the $35,500 level, which was a strong support in May 2021 and May 2022. However, given that the cryptocurrency will be a lower high compared to previous bear market highs, Bitcoin will need to close above $35,500 decisively to start a bull cycle.
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