Here’s When The Crypto Bull Market Could Finally Begin

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Crypto analysts have been trying to assess the prices of major cryptocurrencies, like Bitcoin, to determine when the bull market will begin.

As the holiday season approaches, crypto traders and investors cannot wait for a magical reversal in the trajectory of the market. The global crypto market cap still traded at $841.83 billion, posting a decline of 1.41% the previous day.

With the crypto market cap still well below the $1 trillion mark and Bitcoin price still ruled by the bears, here’s what some of the top analysts think of the recovery.

From Wen Lambo to Wen bull market?

Wen Lambo is a term used by someone to mean when will he get rich by selling his crypto holdings. Now, with the crypto market cap trading 73% below its ATH, analysts are looking for signs of a reversal.

A recent analysis by Crypto analyst bOnchain (@ghoddusifar) highlighted that when the market drops to the delta cap, the bull market will begin. The analyst predicts that historically the delta cap has been the market capitalization support for Bitcoin. Bitcoin’s market capitalization has not yet reached the delta cap.

Bitcoin Delta Cap | Source: CryptoQuant

Another CryptoQuant analyst, IT Tech, believes that BTC is approaching the bottom of the cycle, looking at its unspent transaction output (UTXO). Notably, UTXOs older than six months take nearly 90% of the realized cap. During the sell-offs of previous cycles, in September 2015 and April 2019, this indicator reached over 70% and then began to decline.

UTXO Bitcoin | Source: CryptoQuant

In the past, when the value started to fall for each band, the price of Bitcoin would slowly recover. The younger group has already turned around. If other bands also start spinning, it could mean that a price bottom is near.

Predicting the Crypto Bull Run

Huobi founder Du Jun in a recent interview said that a new crypto bull run could only take place after the next halving event. This is scheduled for 2024.

The last halving was in May 2020, then in 2021 Bitcoin hit an all-time high above $68,000. Similarly, when a BTC halving event took place in 2016, BTC prices hit a new high the following year.

Pseudonymous analyst SmartContracter said he believes Bitcoin’s recent price appreciation was a corrective bounce. However, the price of BTC is expected to reach a new low below $15,000 in the first quarter of 2023, where it may find a longer-term low.

BTC Price | Source: Smart Contract

Finally, a rally in DeFi’s total locked-in value, which is currently near a two-year all-time low, may signal a recovery from the bear market.

Total DeFi value locked | Source: Defillama

The total value locked currently stood at $41.74 billion, down 77% from its all-time high in November 2021. Should a bull run occur, institutional flows in the DeFi space would increase, indicating the start of a bull market.

Disclaimer

BeinCrypto strives to provide accurate and up-to-date information, but it will not be responsible for missing facts or inaccurate information. You comply and understand that you must use this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.

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