- Bitcoin has not yet reached the “alert zone” of hypergrowth in its current market cycle
- The gradual upward trend of the past eight months could accelerate thereafter
Bitcoin [BTC] saw a strong bullish move on April 15 after the release of the CPI figures turned out to be more favorable than expected. At the time of writing, Bitcoin was trading just below $66,000 on the charts. However, it has been in a retracement phase since mid-March and has yet to beat the high resistance at $66.9k formed a month ago.
Over the past four to six weeks, bullish momentum has stalled and fears of a deeper retracement have taken root. Bitcoin ETFs also saw zero or negative flows as speculative interest waned. There was even great fear of a sell-off of mining companies.
Price fears could be unfounded
In a post on X (formerly Twitter) crypto analyst Axel pointed out that we have not seen “real and rapid growth” for Bitcoin this market cycle. In previous cycles, when Bitcoin experienced this, they were highlighted in orange.
The quarterly price performance chart revealed periods of almost 75% gains, but the bulls were unable to go further than that. We have already seen Bitcoin break its all-time high without experiencing hypergrowth, which makes for an extremely bullish scenario in the coming months.
The triple tap at the 75% mark was similar to 2017. It is not guaranteed that we will have such a growth phase, nor that it will last for months at a time as in previous cycles. However, investors should remember that the current cycle is likely still young, and panic resulting from the scenarios outlined may seem trivial in a few months.
One fear that doesn’t seem out of place, outlined by a Core contributor
Bitcoin core contributor Matt Corallo outlined some reasons why he believes it is “difficult not to see a bleak vision for Bitcoin.” According to him, the current existential war is being waged to decide what Bitcoin is. He compared it to the block size wars of 2015-2017.
Read Bitcoin’s [BTC] Price forecast 2024-25
“Then it was about who got to decide what Bitcoin was, now it’s about what Bitcoin is,” he says wrote.
The analyst believes that Bitcoin as an instrument for the freedom to transact without third party supervision is threatened by endless KYC checks. This goes against the original vision, while centralization of mining is another concern.
Bitcoiners are too busy bickering with each other to fight the danger of regulation, he finally warned. Ergo, it will be interesting to see where BTC ends up after a few years.