Real Vision analyst Jamie Coutts suggests a promising horizon for Bitcoin and other cryptocurrencies. He posits that Bitcoin’s potential rise to $63,000 could mark the conclusion of the ongoing bearish trend. This potential recovery may signify the beginning of a new cycle for crypto assets.
What Roles Do Liquidity and Ecosystem Health Play?
Coutts highlights the importance of increasing global liquidity and a resilient crypto ecosystem. These factors suggest that the market correction might be nearing its end, potentially paving the way for a year-long bull market. Despite this optimistic outlook, Coutts acknowledges that geopolitical tensions and negative momentum in some technical indicators could still delay this recovery. He believes that the fourth quarter will be pivotal for investors seeking gains in the coming year.
How Does the Altcoin Season Index Influence Market Trends?
The analyst keeps a keen eye on the Altcoin Season Index, noting its upward movement as an encouraging trend. Yet, he warns that Bitcoin might experience short-lived fluctuations before it can sustain a rally past its historical peak. He emphasizes that the expanding money supply is laying the groundwork for Bitcoin’s forthcoming surge, illustrating a robust correlation between liquidity and Bitcoin’s performance.
Data from Artemis indicates strong activity on smart contract platforms over the past half-year. The rise in daily active users and transaction volumes during this market correction bodes well for crypto assets as they transition into the fourth quarter.
Bitcoin is currently trading at $63,343, reflecting a 6% increase in the last day. Favorable movements within the crypto market may present new investment opportunities. While increased liquidity and solid fundamentals signal an impending bullish phase, investors should remain cautious due to geopolitical uncertainties and the fluctuating nature of technical indicators.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-nears-end-of-bear-market-phase