Will 2024 Replicate the 2021 Bull Run?
The crypto markets received a magnificent push in the past few hours that enabled the Bitcoin price to surpass the crucial $36,000 mark. The token marked new yearly highs above $38,000 and is currently consolidating around the gains. The raised bullish momentum appears to have changed market sentiments to a large extent, as investors turn extremely optimistic about the impending trend.
After the 2022 bear market, traders were eagerly waiting for a trend reversal that seemed to have appeared at the beginning of the final quarter of the year. Therefore, considering the previous market trend, popular analyst Michael van de Poppe believes that Bitcoin has ended the accumulation phase and entered the first part of the bull cycle.
Referring to the above chart, the analyst says that the markets are trending through several cycles, which are very typical for the crypto space. These cycles usually take four years and are classified into several categories.
- Bear Market: painted in red
- Accumulation:-painted in green
- Bull phase 1: painted in purple
- Bull phase 2: painted in green, which is also called the mania period
The bear market in the crypto space prevailed through November 2021 and November 2022, which hit the bottom by the end of the year. Since then, the markets have been accumulating, with the current month being the end of the accumulation phase. Beyond this, a year of bull phase 1 is expected to kick off, wherein the BTC price could slowly grind upwards but may certainly not break the all-time high. This takes place in the second year of the bull market.
In the meantime, the altcoins are also expected to perform extremely well. As long as Bitcoin doesn’t go vertical, altcoins are believed to maintain a steady trend with the potential to rise by nearly 5x to 10x. A similar trend has been observed with Chainlink; as the LINK/BTC pair approaches its ATH, a DeFi summer may also be expected.
Collectively, the markets are believed to rise significantly with the altcoins starting to flourish as the BTC pair could start to drop substantially. This could further accelerate the trade towards phase 2 of the bull cycle.
