Bitcoin’s bull market is showing signs of a second breakout, according to analyst Crypto Dan from CQ Korea. He points to historical patterns from previous cycles in 2013 and 2020, where long-term holders were able to profit twice before reaching a peak. Unlike the 2017 cycle, which lacked a period of adjustment, the current market seems to be following a more similar path to these earlier cycles.
Crypto Dan’s analysis is backed up by the Long-Term Holder Spent Output Profit Ratio (SOPR) chart from CryptoQuant, which shows trends resembling those of previous bull cycles. The SOPR metric helps to determine whether long-term holders (those holding BTC for over 155 days) are selling at a profit or a loss. Values above 1 indicate that holders are selling at a profit, while values below 1 suggest sales at a loss.
He also mentions the impact of global interest rate cuts, which he believes could take several months to over a year to significantly increase market liquidity. Despite this, investor expectations often drive prices ahead of such changes, indicating potential positive movements by 2025. By taking a long-term perspective and focusing on the overall trend rather than short-term fluctuations, investors may see more favorable outcomes in the crypto market.
Overall, the analysis suggests that the bull market still has room to grow despite hitting an early peak. This perspective aligns with other arguments that anticipate continued bullish momentum in the crypto market. By staying informed and adopting a long-term investment strategy, investors may be able to capitalize on the potential profits that lie ahead in the evolving crypto landscape.
