A crypto pundit has identified striking similarities between the Bitcoin (BTC) market behavior in 2023 and 2024. Based on the analyst’s observation, he believes that Bitcoin is experiencing a comparable cycle of decline, characterized by widespread investor sell offs, which could precede a significant price breakout to new levels.
Comparing The Bitcoin Markets Of 2023 And 2024
In a rather lengthy X (formerly Twitter) post on September 3, a crypto pundit identified as ‘Dana Crypto Trades’ shared some intriguing details about the current Bitcoin market, comparing it to the market environment and trends observed in 2023. The analyst noted that Bitcoin’s price fluctuated within a range for over six months, much like it did last year.
He highlighted that despite the cryptocurrency‘s bearish performance, the expectations about the market’s future outlook in the fourth quarter of 2024 remain particularly optimistic.
Last year, numerous crypto investors chose to sell off their Bitcoin holdings when they were priced around $25,000, hoping to buy back at a lower value. This massive sell-off occurred despite the more than 90% probability that Spot Bitcoin ETFs would gain approval this year.
Interestingly, A similar behavior is unfolding in the present Bitcoin market. The market sentiment has turned negative due to Bitcoin’s recent price volatility, leading investors to become bearish. Most of these investors are now liquidating their holdings, with the expectation to repurchase it at a 10% to 20% lower price.
Daana Crypto has warned that while trying to buy Bitcoin at a lower price might seem like a great investment strategy, it carries a significant amount of risks. Basically, if the market moves upwards instead of the expected decline, investors who sold their Bitcoin
may miss out on substantial gains.
He referenced a situation last year, where some investors had missed out on a 3X price increase in Bitcoin because they had sold off their coins and were waiting for a slight price dip. While providing insights into current market set up, Daan Crypto acknowledged that he is unable to predict Bitcoin’s short term market movements, therefore advises that investors remain cautious.
He indicated that for most investors, holding Bitcoin over the long term might be the best strategy, especially if the market could witness a significant breakout to the upside once bearish trends turn stable.
BTC Eyes Next Target At $100,000 In Q4
Another crypto analyst, known as ‘Stockmoney Lizards,’ on X has also drawn comparisons between Bitcoin’s current market patterns with those from the early years.
He observed similar trends in Bitcoin’s price action in 2016 and 2024, indicating that the pioneer cryptocurrency could experience a comparable but less dramatic price increase to what was seen in 2016. Despite this, the crypto analyst has set a price target of $100,000 for Bitcoin by the end of Q4 2024.
Featured image created with Dall.E, chart from Tradingview.com