This analyst believes the recent Bitcoin pullback signals the end of the current bull run, but not the entire multi-year bull market cycle.
In his YouTube video posted on Dec. 18, the analyst behind the popular Crypto Banter channel provided his perspective that the recent pullback in Bitcoin (BTC) prices signals the likely end of the current cycle in the ongoing bull market, rather than the end of the bull market altogether.
The analyst pointed to high leverage rates across crypto assets, excessive speculation in memecoins, and overcrowding of certain trades like airdrops as signs of unsustainable frothiness and “irrational exuberance” in the market. In his view, this indicates we have reached the apex of the cycle driven by expectations around a Bitcoin ETF approval in the U.S.
However, he believes the timing is ripe for Bitcoin to enter a new cycle within the longer-term bull market, just as it has after previous cyclical tops in the past. The analyst expects the next cycle to bring fresh narratives and opportunities that will attract a new cohort of investors to drive prices higher after a healthy correction shakes out the excesses of the current cycle.
While he cannot rule out the potential for Bitcoin to fall to the $35,000 level and fill the CME futures gap around $39,000, the analyst sees this as a buying opportunity for Bitcoin and quality altcoins rather than the end of this crypto bull run. He remains staunchly bullish, looking out through 2024.
Regarding narratives that may dominate the next cycle, the analyst believes the outperformance of Solana (SOL) versus Ethereum (ETH) will continue as retail investors flock to the faster and cheaper Solana network.
He expects Solana to reach a similar market capitalization to Ethereum by the end of the bull market as momentum around so-called “Ethereum killers” builds.
