Bitcoin price 2024 bull cycle features smaller corrections as ETF support and institutional buying stabilize the market.
Supply redistribution and lower volatility signal a maturing market with potential for further growth. Key resistance levels now define the next move for BTC.
Bitcoin Price Bull Cycle Sees Smaller Corrections Amid Institutional Buying
According to Ki Young Ju of CryptoQuant, Bitcoin price corrections during the current cycle are expected to be much shorter than previous ones.
Based on past cycle data, including 2017 and 2020, we saw a steeper drawdown following price discovery.
The correction in the 2024 cycle, however, tends to have a more stable correction trajectory. Largely because of steady buying from ETFs and institutional investors.
The chart also shows that although earlier bull cycles were followed by corrections of more than 50%, this bull cycle has so far seen rather gentle corrections.
Such a shift would be the result of growing institutional involvement. This would add a stabilizing effect on Bitcoin’s price volatility.
Consistent buyers in the market include large-scale investors and ETFs. They are moderating the dramatic price losses, thus improving market resiliency.
The continued bull cycle shows we’re in a maturing Bitcoin economy where institutional adoption is a big part.
With more and more ETFs and financial institutions buying in, it seems likely the market will still be able to support those rising price levels without massive corrections.
In this cycle, Bitcoin is a more robust and less volatile investment than it is.
Bitcoin’s Supply Dynamics Show Potential for Further Growth
Bitcoin’s current supply dynamics don’t necessarily mean the market has reached its top, as Glassnode’s latest analysis shows.
In terms of history, the bitcoin price keeps going up and up even as the long-term holder (LTH) distribution increased and the supply reached bottom.
These cycles are visible on the Long/Short Term Holder Supply Ratio chart, and current trends look like earlier growth phases.
The data indicates a slow redistribution of Bitcoin from long- to short-term addresses, which is a pattern normal in bull markets.
However, even though the supply has been distributed through these mechanisms, prices have, in the past, continued to climb due to overall market demand that consumed the dispersed commodity.
This suggests there is room for Bitcoin price to grow on the back of enough accumulation and the confidence in the market.
These historical patterns serve to make a strong case for upside, even in redistributions, says Glassnode.
As the current behavior of holders has followed along with past growth cycles, it seems that the market may not be at its peak yet. And this reinforces the possibility that bullish momentum has legs going forward in the months ahead.
Bitcoin Distribution Accelerates as Holder Behavior Shifts
According to the latest report from Glassnode, there is a dramatic change seen in Bitcoin holder behavior as this distribution has grown dramatically over the past 30 days.
As a result, the Long/Short-Term Holder Supply Ratio has collapsed to 3.78, the lowest point in this market cycle.
This informs us that holding is not the dominant behavior among market participants, as more holders like to distribute their assets.
As short-term holdings increase, the long-term holdings decrease, creating a scale chart. The trend indicated here suggests that participants may be prepared to take profits or reallocate assets in periods of price volatility.
When you look at any accelerated distribution relative to the historical phases, it suggests you are about to enter the phase when the market momentum starts to shift.
Glassnode points out that this shift in behavior may signal a crucial point in the current cycle.
Lower holding levels can bring short-term volatility, but they can also indicate an open and lively market with new members coming onboard while others transfer.
This will be a key dynamic to watch to glean additional insights about Bitcoin’s next move
Bitcoin Price Key Levels to Watch
On the 4-hour BTC chart, an analysis reveals a bullish structure as Bitcoin price is constantly climbing toward a critical resistance level at $103,635.
It is a psychological and technical barrier, and a breakout here should see the bulls push price to new highs. Key zone for buyers to keep control is between $100,000–$98,000 immediate support.
A pullback level deeper is positioned near $92,000, where you also have more support from here. Higher lows on price action suggest it is continuing to run higher as buyers remain in a better position to keep this going.
Source: TradingviewThat all adds up, and the indicators add to the bullish outlook. Green bars are appearing on the MACD histogram and the MACD line crosses above the signal line. This shows a crossover, thus a growing buying pressure.
The RSI is also at 63.14 and shows strong momentum, yet remains below an overbought level. This leads me to believe there is more room for gains for Bitcoin before a more serious correction.
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