Top Analyst Explains Why The Crypto Bull Run Is Far From Over

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As a seasoned analyst with extensive experience in the crypto market, I find myself in agreement with Lark Davis’ bullish stance on Bitcoin and the broader cryptocurrency market. Having closely followed the ebbs and flows of the market since its inception, I can attest that the current dynamics bear striking resemblances to those seen during key turning points in previous cycles.

As per financial expert Lark Davis, it appears that Bitcoin’s ongoing cycle within the crypto market boom hasn’t reached its conclusion yet. A range of technical indicators such as Relative Strength Index (RSI), Network Upvalue Ratio (NUPL), Market Value to Realized Value (MVRV), and Fibonacci retracement suggest that there is still considerable potential for growth in this particular market segment.

Despite potential short-term hurdles near $100,000 that could strain traders’ endurance, Davis is confident that Bitcoin’s ultimate high will soar beyond this figure. As we move closer to the next market phase, it would be wise for traders and investors to brace for a possible peak surge in the coming months.

Crypto Bull Run Isn’t Over, Bitcoin’s Top Not Even Close, Says Lark Davis

After the Federal Open Market Committee (FOMC) meeting on December 18, the overall cryptocurrency market experienced a significant drop. However, analyst and investor Lark Davis suggests that Bitcoin and the broader cryptocurrency market are still showing robust energy, implying that the crypto bull run may have much further to go before it peaks.

According to predictions, the U.S. Federal Reserve lowered interest rates by a quarter point, as anticipated. However, they projected fewer rate reductions in the year 2025 compared to their previous estimates.

The price of Bitcoin fell by over 5%, dipping below $94,000, showing only small indications of rebounding. Meanwhile, all other cryptocurrencies experienced significant declines, with losses in excess of 10% each.

Lark Davis, an investor and analyst, noted that Bitcoin’s recent 13% drop after a robust Q4 surge appears to mirror the market behavior seen in December 2020.

If you’re worried that this is the end of the bull market, know this:

In December 2020, $BTC dumped 12%, after witnessing a 77% rally in October-November.

It then went from $17,000 to $41,000 (a 136% move) in the next 23 days.

Something similar is happening right now, with…

— Lark Davis (@TheCryptoLark) December 20, 2024

During that period, Bitcoin experienced a drop of 12% following a dramatic increase of 77% in October and November. However, it subsequently soared from $17,000 to an impressive $41,000—a staggering 136% rise—in just 23 days. Despite warning of a potential additional correction of around 10-15%, Davis maintains that Bitcoin and the overall crypto market still hold strong momentum, implying that the crypto bull market might persist for quite some time yet.

 

In his latest podcast, Davis expressed doubts about Bitcoin reaching a peak of $100,000 and hinted that the current market cycle might be nearing its conclusion.

Based on various technical indicators and historical trends, Davis posits that Bitcoin might possess significant momentum, potentially propelling it to surpass the symbolic threshold of $100,000 and establish new record-breaking highs.

RSI Suggests Room for Growth

Davis started off by examining Bitcoin’s monthly Relative Strength Index (RSI). Typically, the highest point in Bitcoin’s cycle aligns when the RSI hits or surpasses 90. In both the 2017 and 2021 market cycles, these peaks were also associated with heightened market enthusiasm and a general bull run within cryptocurrencies.

At present, Bitcoin’s Relative Strength Index (RSI) is approximately 75-76, significantly lower than past highs. This might suggest that there is still a lot of potential for growth in the market. When comparing this phase to previous cycles, Davis pointed out that initial peaks were often followed by further price surges. It’s possible that Bitcoin could experience similar increases in the upcoming months.

As a researcher, I’m finding that the Net Unrealized Profit/Loss (NUPL) chart aligns with my bullish perspective on Bitcoin. This particular metric separates investor sentiment into areas such as belief, euporia, and greed. At present, Bitcoin resides in the “belief” area, which is significantly removed from the “euphoria” region that typically characterizes market peaks.

Similarly, much like the MVRV Z-score serves as a dependable on-chain metric, it signifies that Bitcoin’s value could be substantially undervalued relative to past peak prices. According to Davis’ prediction, this suggests a potential crypto bull run is imminent, pushing its values up towards levels comparable to the high points of the previous market cycle. This, in turn, implies that the current market has not yet reached its peak and may continue to rise further.

Fibonacci Levels and Psychological Resistance

Davis highlighted the significant role of the 1.618 Fibonacci retracement level in Bitcoin’s price movements. This specific level, being a crucial technical indicator, aligns with the recent resistance at $100,000. The importance is enhanced by its technical target as well as its psychological impact.

Despite the absence of a current crypto bull market surge, Davis dismissed this as merely the initial step in Bitcoin’s price rise. He clarified that large investors (whales) strategically place sell orders at significant round figures such as $100,000, creating temporary resistance. However, he emphasized, the overall trend continues to point upward.

The individual making the investment analysis looked at historical trends and projected that Bitcoin might hit its maximum around March or April of 2024. This estimate could see Bitcoin soaring to as high as $250,000 or potentially even more. His forecast is built on recognizable patterns in charts, particularly a shrinking gap in the Pi Cycle Top Indicator.

In light of markets’ volatile characteristics, Davis advises traders to exercise caution while remaining hopeful, as the cycle could persist well into the second half of 2024. Currently, the value of Bitcoin stands at approximately $96,924, representing a decrease of 1.77%.

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2024-12-20 22:33