Crypto Analyst Reveals Key Insights into Bitcoin’s Bull-Bear Transition Phase

Samuel Edyme

8 months ago

3 mins read

Crypto Analyst Reveals Key Insights into Bitcoin's Bull-Bear Transition Phase

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Bitcoin has long been characterized by its cycles of bull and bear markets, each marked by the trajectory of its price movements. However, the crypto appears to be in a transitional phase, according to a CryptoQuant analyst under the pseudonym CryptoHell.

CryptoHell has recently shared insights into Bitcoin’s current market cycle, providing investors with key indicators to watch during this period.

Understanding The Bitcoin Bull-Bear Transition Phase

In a recent post on the CryptoQuant QuickTake platform, CryptoHell revealed that Bitcoin’s bull-bear market cycle indicator from CryptoQuant has been a “reliable tool” for mapping out the crypto’s recurring trends.

Bitcoin bull-bear market cycle indicator. | Source: CryptoQuant

The analyst explained that the cycle alternates between overbought phases, termed “Overheated Bull,” and oversold phases, referred to as “Extreme Bear.”

Adding more context, CryptoHell elaborated:

The bull-bear market cycle indicator from CryptoQuant illustrates the recurring cycles of Bitcoin over recent years, highlighting movements between overbought phases (Overheated Bull) and oversold phases (Extreme Bear). Each bull market phase is followed by a bear market, demonstrating how market volatility and sentiment heavily influence Bitcoin’s price.

The analyst added that as of 2024, Bitcoin is in a “transitional phase” as it shows signs of recovery from the previous bear market. However, the analyst stresses that it is unclear whether Bitcoin is poised to enter a full-blown bull market.

Is Bearishness Over?

Meanwhile, in another QuickTake post, CryptoHell highlighted an interesting point concerning Bitcoin, mentioning that although there appears to still be short-term selling pressure in Bitcoin, as data shows, some fundamental indicators present relatively positive signs for the Bitcoin market.

For instance, selling pressure from miners and long-term holders remains low, suggesting that these market participants are not contributing significantly to the current volatility.

Howvever, sentiment from institutional investors and the broader US market appear weak. This indicates that the overall mood among larger investors is not overly bullish at this stage.

Bitcoin overview metric. | Source: CryptoQuant

CryptoHell highlighted that technical indicators further support the notion of a potential short-term peak. The Stochastic indicator, known for identifying overbought and oversold conditions, points toward an overbought state, hinting at the possibility of a market correction.

According to the analyst, volatility may continue as the market finds its footing, adding:

Investors should remain cautious, as profit-taking and selling pressure are evident from several sources. However, there is still potential for a longer-term bullish trend if selling pressure eases and market sentiment improves.

So far, Bitcoin appears to be now seeing a rebound, with its price suddenly rising 5.3% in the past day, reclaiming the psychological $60,000 price level. At the time of writing, the asset is approaching the $61,000 mark with a current trading price of $60,905.

Bitcoin (BTC) price chart on TradingView — BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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