In the ever-evolving cryptocurrency market, analyst CrediBULL highlighted a significant shift from the familiar sideways basing period to a more dynamic pattern of V-reversals, especially after major market downturns. As the market navigates through its current stage, the expectation is for a non-impulsive V-reversal, signaling a move from recent lows to a higher low, essentially completing a running flat.
This transition, as per CrediBULL’s analysis, paves the way for an impulsive surge, potentially pushing Bitcoin’s value to over $60,000. However, this upward trajectory may be preceded by a brief period of sideways movement before gaining significant momentum.
Amidst this backdrop, Bitcoin, the leading digital currency, recently witnessed a sharp decline, dropping nearly 5% within an hour during the Asian trading session on December 11. This fall from $43,800 to $41,780 in a short span underscores the market’s volatility. Despite this, Bitcoin’s present price hovers around $42,159.14 marking a 3.7% increase from last week, showcasing its resilient nature.
Following a robust rally that added 65% to Bitcoin’s value since mid-October, CryptoQuant, a crypto analytics firm, noted that the stablecoin supply ratio (SSR) has reached a two-year high. This suggests that investors are valuing Bitcoin more than stablecoins, indicating a bullish outlook for Bitcoin.
Currently, more than half of Bitcoin’s circulating supply is profitable, a trend historically linked to either local or major price peaks. However, a notable segment of the market, particularly among long-term holders, remains in a less favorable position.
The upcoming week is crucial for the cryptocurrency market, with several central banks, including the Federal Reserve, set to announce interest rate decisions. These macroeconomic factors, coupled with market sentiment, could significantly influence the market’s direction.
In the broader altcoin market, Ethereum mirrored Bitcoin’s downturn with a 4.8% decrease, while other major altcoins like XRP, Cardano, Polkadot, and Chainlink faced larger losses. Notably, Avalanche (AVAX) defied this trend with a 7.8% gain, showcasing the diverse responses within the cryptocurrency ecosystem.
While the cryptocurrency market is poised for a potential V-reversal, as suggested by CrediBULL, investors may witness some sideways movement before a more decisive impulsive trend takes hold. The market’s future trajectory remains closely tied to both macroeconomic developments and evolving market sentiments.
