The phoenix rises from the ashes!


7:30 p.m. ▪ 3 min reading ▪ by Eddy S.

In the year 2024, Bitcoin has once again demonstrated its ability to rise from its ashes, like an indomitable phoenix. After a 15% correction that made timid investors shudder, the crypto-queen showed its fangs, resuming its irresistible rise. This resilience is only a reflection of the underlying power of a truly decentralized monetary system, impervious to manipulation and state interference.

Bitcoin Crypto

A saving correction for Bitcoin – sanitation before the recovery

Bitcoin's recent 15% correction, while spectacular, was actually just a healthy and necessary phenomenon. After all, who hasn't taken a deep breath before starting a new climb? CryptoQuant analysts have shed light on the underlying realities: massive profit-taking by miners, whales and other institutional investors.

Far from being a sign of weakness, this wave of sales demonstrates on the contrary the maturity of a market where rational players know how to seize opportunities. Moreover, the profit margins achieved during this movement have reached unequaled levels since May 2019, testifying to the ever-growing appeal of Bitcoin.

But above all, this correction will have made it possible to evacuate part of the speculative frenzy which threatened to cause the price of Bitcoin to drift towards artificial heights. In a way, a beneficial weeding to allow the plant to regain strength before the next flush of sap.

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The unshakeable fundamentals of a lasting bullish cycle

Beyond the occasional jolts in the price, it is the structural fundamentals of Bitcoin which reassure about the sustainability of its current bullish cycle. Indeed, CryptoQuant analysts have noted several strong signals indicating that this bubble has not yet reached its peak.

First of all, investment flows from new players remain relatively low, barely 48% of capital committed. Historically, bullish cycles only run out of steam when this proportion reaches dizzying levels of 84 to 92%. Substantial room for improvement in other words.

Additionally, valuation indicators such as the CryptoQuant P&L Index remain below critical areas that preceded previous highs. Further proof that Bitcoin still retains considerable upside potential before reaching excessive valuation levels.

Thus, in this year 2024, Bitcoin will once again have reserved for us its little theater of shadows and lights. But behind the short-term escapades, it is indeed an underlying upward dynamic that is emerging, driven by rock-solid fundamentals.

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Eddie S. avatarEddie S. avatar
Eddy S.

The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.

DISCLAIMER

The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.

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