Key Facts: Bitcoin “is driving profit-realization volume,” says Crypto Dan. There could be 1 or 2 months of lateralization left. A report by the analyst known as Crypto Dan, published on April 3, reveals when bitcoin (BTC) could see a big price rise. According to him, it is possible to predict this based on historical data on the realized profit, that is, the coins sold at a profit. “In a bull market, when bitcoin reaches the peak of the previous bull cycle, the scale of profit realization increases,” he introduces. As a result, he specifies that the price of the currency goes through a period of lateralization or adjustment for a time to absorb the volume. Once he gets past that period, he warns that the market reaches the back of the bull market and strong gains are seen. Currently, as he shows below, bitcoin is just in the phase before this stage.
In orange you can see the price of bitcoin and in red the sales in profits and losses. Source: CryptoQuant. A month ago, the currency surpassed its maximum price of the previous bullish cycle that occurred in 2021 (USD 69,000), rising to USD 73,700 from where it later fell. “After a correction or sideways period of about 1-2 months, we are likely to see another strong rally,” maintains Crypto Dan. After hitting the new record of $73,700, bitcoin has remained trading at lower levels with high volatility, as seen below.
Bitcoin price per day since it marked its all-time high so far. Source: TradingView. The analyst further adds that the strong rise of most altcoins occurs on the back of the bitcoin bull market. Therefore, he considers that 2024 will probably be a good year for both BTC and cryptocurrencies in general. According to the on-chain data company Glassnode, this period of consolidation or price reduction historically occurs due to profit-taking by long-term investors. And he maintains that it tends to culminate in breaking upwards as soon as the entry of new demand increases.
Current bitcoin price could still be a buying opportunity
In tune, the on-chain data company CryptoQuant manifested that current bitcoin prices could be a buying opportunity, according to three analysts. First of all, it was reported that Maarten Regterschot, market researcher and community manager at CryptoQuant, highlights the increase in the Coinbase Premium Gap. This metric, shown below, reflects that purchases by US institutional investors have grownmotivated by the launch of bitcoin exchange-traded funds (ETF) in the country.
Institutional demand is reflected in green, while supply is shown in red, according to the Coinbase Premium metric. Source: CryptoQuant. CryptoQuant says, secondly, that analyst Burak Kesmeci observed significant bitcoin withdrawals from exchanges, exceeding 18,800 BTC. He points out that this measure, probably by institutions that opt for private wallets, hints at lower selling pressure. Thirdly, he mentions that the analyst and trader known as Crypto SunMoon has distinguished record positive futures funding rates on the currency. He explains that this indicates strong bullish sentiment, since historically that optimism precedes price corrections before sharp price increases. Such projections take place in a cycle that has started an upward trend earlier than all previous ones. As reported by BitcoinDynamic, it is the first time that bitcoin reaches a new price record before the halving, the halving of its issuance, which strengthens the idea that it will be a “super cycle” for the market.