The cryptocurrency market is signaling that it may be entering the late stages of its current bull run, according to insights from CryptoQuant. Contributor Crypto Dan pointed out that the ongoing bull market, which kicked off in January 2023, might peak in the first or second quarter of 2025. The analysis reveals that 36% of Bitcoin traded in the fourth quarter of 2024 had been held for less than a month, mirroring patterns seen during previous market tops. Yet, it appears that there’s still room for significant gains in Bitcoin and other altcoins before a correction potentially occurs. Investors are advised to remain vigilant as the market matures.
This cautious outlook from CryptoQuant stands in contrast to other analysts’ more upbeat predictions. Steno Research suggests that the year 2025 could be a monumental one for the cryptocurrency sector, envisioning Bitcoin and Ethereum eclipsing previous all-time highs. Meanwhile, asset manager VanEck sees Bitcoin potentially soaring to $180,000 and Ethereum surpassing $6,000 by the end of that year. Support for these optimistic forecasts comes from traders on platforms like Polymarket and Kalshi, who anticipate record valuations paired with favorable regulatory developments, such as the approval of new crypto ETFs and the formation of a U.S. Bitcoin reserve.
Despite this optimism, some analysts warn of short-term hurdles. John Glover, Chief Investment Officer at Ledn, predicts a temporary dip in Bitcoin’s price to $89,000 before it rebounds to $125,000 later in the quarter. Factors like reduced liquidity and Federal Reserve monetary policies present possible roadblocks. Markus Thielen from 10x Research emphasized that upcoming decisions from the Federal Open Market Committee could impede Bitcoin’s upward trajectory.
Currently, Bitcoin is trading at $102,138, with key support at $97,026 and resistance at $103,096. A breakthrough above this resistance level could propel the price to new highs, possibly exceeding its December 2024 peak of $108,000. Yet, technical indicators suggest that the existing trend is lacking momentum, as evidenced by the Average Directional Index sitting at 18.69, indicating a weak trend that would need to strengthen for further bullish action.
CryptoQuant underscores the significance of risk management at this stage, recommending that investors consider gradually liquidating their positions as the market approaches its cyclical peak. While differing views persist regarding the long-term direction of the market, there is a shared belief that 2025 will be crucial for cryptocurrencies, characterized by notable price fluctuations and possible regulatory breakthroughs. Although the potential for further growth exists, exercising caution is key as the market prepares for inevitable corrections.
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