Bitcoin shows signs of nearing the top of its bull cycle, as market sentiment shifts and whales continue to buy - IcoHolder.
After hinting at an all-time high during the inauguration of pro-crypto U.S. President Donald Trump, Bitcoin (BTC) ended Monday's trading with a shooting star candlestick, signaling a potential reversal. This shift comes after months of solid gains since January 2023, raising concerns that the cryptocurrency might be nearing the end of its bull cycle.
The recent surge in Bitcoin prices appeared to be nearing its peak, as the cryptocurrency displayed signs of entering a distribution phase. Following heightened market volatility, leveraged traders experienced significant losses, with over $638 million wiped out, mostly affecting long positions. This has raised the possibility of a long squeeze, potentially fueling further bearish sentiment in the market.
Analysts are starting to question whether Bitcoin has reached the top of its current bull cycle. Market commentator @Htltimor on X (formerly Twitter) suggested that Bitcoin’s price has already completed the parabolic phase of the 2024/2025 bull run, and what follows could be a prolonged bearish trend. Many foresee Bitcoin’s price moving towards $85,000 in the coming months before initiating a multi-quarter accumulation phase in anticipation of the 2028 halving event.
Whale Investors Continue to Buy Bitcoin
Despite the looming bearish outlook, Bitcoin’s fundamentals remain strong, especially when considering the behavior of whale investors. Market data from Coinglass reveals that the total supply of Bitcoin on centralized exchanges has been steadily shrinking, with only around 2.19 million BTC remaining. This decline in available supply reflects continued confidence in the digital asset.
The approval of spot BTC ETFs in the U.S. has played a pivotal role in fostering bullish sentiment. Led by major financial institutions like BlackRock and Fidelity, these ETFs have accumulated over $120 billion in assets, adding substantial momentum to Bitcoin’s market. MicroStrategy Inc. has also remained steadfast in its commitment to Bitcoin, continuing to purchase more BTC through leveraging global capital markets.
As Bitcoin approaches a critical juncture, its short-term price trajectory remains uncertain, with analysts divided over whether the asset will continue its climb or begin a more significant correction. However, the actions of large institutional investors and the shrinking supply on exchanges suggest that Bitcoin’s long-term outlook may still be bullish despite the recent price fluctuations.
