Bitcoin (BTC) has experienced a rollercoaster ride in 2024, with prices reaching new highs in march before a recent correction. However, many analysts remain optimistic about the future, believing the current bull cycle has significant room for growth.
One key indicator for long-term bullish sentiment comes from on-chain analysis provided by IntoTheBlock. their research focuses on the behavior of “long-term holders” (LTHs) – investors who haven’t sold their coins for over a year. historically, during bull runs, LTHs tend to accumulate coins throughout the cycle, eventually selling a portion of their holdings near the peak.
IntoTheBlock’s data suggests that LTHs are still accumulating Bitcoin, though at a slower pace compared to the initial stages of the bull run. this, according to analysts, signifies there’s a lack of the selling pressure typically seen towards the end of a bull cycle.
The long-term holder pattern suggests we are still in the earlier stages of this bull cycle,” says Marie Tranchant, a crypto analyst at IntoTheBlock. “there is plenty of time remaining when compared to previous cycles, where LTHs began significant selling closer to the top.”
Another factor supporting the “bullish runway” argument is the upcoming Bitcoin halving event expected in November 2024. Halvings occur roughly every four years and reduce the amount of new Bitcoin entering circulation by 50%. this programmed scarcity event has historically coincided with price surges, as demand for a limited supply asset increases.
“The upcoming halving is a major catalyst for the next leg up,” says Michael Saylor, MicroStrategy CEO and a prominent Bitcoin bull. “Historically, halvings have been a turning point for the Bitcoin market, and we expect November to be no different.”
While some analysts warn of potential short-term corrections, the overall sentiment leans towards continued growth throughout 2024 and beyond. factors like increasing institutional adoption and growing awareness of Bitcoin as a hedge against inflation are also contributing to the positive outlook.
“The fundamentals for Bitcoin remain strong,” says Alistair Milne, analyst at Weiss Ratings. “institutional interest is at an all-time high, and Bitcoin’s unique value proposition as a scarce, digital store of value is becoming increasingly recognized.”
It’s important to remember that the cryptocurrency market remains volatile, and unforeseen events can impact prices. However, for now, many analysts are confident that Bitcoin’s bull cycle has plenty of room to run, with the upcoming halving and ongoing adoption trends acting as key drivers for continued growth.