New lows in July 2023, before ATH in 2024?
This chart analysis reveals an interesting pattern in the total market capitalization of cryptocurrencies.
In 2018, we observed a notable red horizontal line that acted as support on multiple occasions, as indicated by the yellow square. However, as the market dynamics changed, this line transformed into a resistance level, denoted by the pink ellipse, preceding a final drop that marked the bottom of the cycle.
Fast forward to 2021, and we find that the same red line drawn on the chart also functioned as support multiple times before transitioning into a resistance level.
What makes this observation even more intriguing is that in both cycles, the red line served as resistance shortly after the halfway point between Bitcoin (BTCUSD) halvings, an event that influences the supply of BTC.
Considering these patterns, it is reasonable to assume that we might witness new lows in the coming months, with a potential black-swan event in July. However, it's important to note that black-swan events are unpredictable and can have a significant impact on markets. It is possible of a correction to near lows of late 2022, without necessarily breaking into new lows.
Following the anticipated consolidation, the subsequent price movement could be faster than observed in previous instances. This expedited consolidation is partly due to the proximity to the next BTC halving in around April 2024, which historically affects market dynamics.
Regardless of short-term fluctuations, the analysis suggests that an all-time high (ATH) in 2024 is likely, with the market continuing to climb higher into 2025. These projections indicate a positive long-term trend for the cryptocurrency market for the next 2 years.
Disclaimer: Keep in mind that market predictions are about as reliable as a weather forecast in outer space. Use this analysis as a conversation starter, not as financial advice. Investing in cryptocurrencies carries risks, so do your homework and make informed decisions. Remember, no crystal balls here—just a pinch of insight and a dash of caution.
In 2018, we observed a notable red horizontal line that acted as support on multiple occasions, as indicated by the yellow square. However, as the market dynamics changed, this line transformed into a resistance level, denoted by the pink ellipse, preceding a final drop that marked the bottom of the cycle.
Fast forward to 2021, and we find that the same red line drawn on the chart also functioned as support multiple times before transitioning into a resistance level.
What makes this observation even more intriguing is that in both cycles, the red line served as resistance shortly after the halfway point between Bitcoin (BTCUSD) halvings, an event that influences the supply of BTC.
Considering these patterns, it is reasonable to assume that we might witness new lows in the coming months, with a potential black-swan event in July. However, it's important to note that black-swan events are unpredictable and can have a significant impact on markets. It is possible of a correction to near lows of late 2022, without necessarily breaking into new lows.
Following the anticipated consolidation, the subsequent price movement could be faster than observed in previous instances. This expedited consolidation is partly due to the proximity to the next BTC halving in around April 2024, which historically affects market dynamics.
Regardless of short-term fluctuations, the analysis suggests that an all-time high (ATH) in 2024 is likely, with the market continuing to climb higher into 2025. These projections indicate a positive long-term trend for the cryptocurrency market for the next 2 years.
Disclaimer: Keep in mind that market predictions are about as reliable as a weather forecast in outer space. Use this analysis as a conversation starter, not as financial advice. Investing in cryptocurrencies carries risks, so do your homework and make informed decisions. Remember, no crystal balls here—just a pinch of insight and a dash of caution.