Bitcoin – A Well Disguised Inflection Point

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17 Jun 2024

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An Evolving Market
If you compare the Bitcoin market today with the Bitcoin market a decade ago, it’s a radical shift. It’s no longer just an internet currency for computer geeks, gamers, and cypherpunks. It has become an institutional-grade asset with a market cap exceeding $1 trillion. Since its inception, Bitcoin has been in a constant state of transformation, regarding its role in the financial world.
Despite the growth, adoption, and ongoing transformation, Bitcoin’s cyclical history and price action have continued to rhyme. Many of us who have been in this space since the early days, and subsequently, experienced multiple cycles have often discussed the possibility of an adjustment regarding Bitcoin’s cyclical behavior. At first glance, this appears to be a somewhat logical conclusion.
However, examining the data reveals that Bitcoin remains obedient and in tune with its cyclical history and trajectory. Nothing much has changed in this regard, apart from the obvious… diminished returns. This is a result of the dynamics I address regarding the micro-cap market. In Bitcoin’s case, market cap growth, alongside an increase in volume will restrict price growth. The opposite is true of the micro-cap market.
Defining Moment
Historically, we are in the cycle phase where the price action begins to break away from the previous all-time high level and move higher. This is typically a few months after the halving. Historically, September would mark a distinguishable adjustment in the price action. This provides a short window of opportunity for Bitcoin to plot its course.
Some are concerned that BTC is trading below $67K, and while it’s not ideal, it’s still acceptable. However, if BTC is still trapped within or below this range in September, a reassessment would be required. There is still time and room for Bitcoin to make its move. These levels remain crucial though, and more risk-averse investors are awaiting a more decisive move above $72K before entering or re-entering the market.
Altcoins are not doing much, apart from a few memecoins and a handful of isolated projects. Certain micro-cap projects perform well in such an environment, as their performance is usually linked to a partnership or other significant advancement regarding adoption. A stagnant market is unable to hinder such progression. It might dampen the gains somewhat. However, they will still be evident.
Essentially, the world is waiting on more than a price surge. It is waiting on Bitcoin to reaffirm its habitual behavior or begin an entirely new and undiscovered chapter of its existence. A lot will be communicated to the market in the next three months. Investors are to pay attention and watch out for clues that indicate Bitcoin’s decision. Bitcoin is known to be an asset that travels its own path.

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Final Thoughts
Bitcoin has managed to avoid the restrictions, manipulation, and controlling forces of the past. However, it currently faces its most significant battle. Along with institutional support comes a strong taming dynamic. My thoughts are that Bitcoin will eventually cast aside the restrictions and move forward. However, we must first wait to see how this story unfolds. All the best! See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.