Crypto analyst Bob Loukas has launched a brand new video analysis titled “No Bull.” Within the video, Loukas delves into the present state of the Bitcoin market, addressing rising issues about the potential for a canceled bull run.
Loukas begins by acknowledging the extended interval of consolidation for the Bitcoin worth. He senses that “there may be now some worry creeping into the market,” partly as a result of components such because the Bitcoin ETF being “out for fairly a while” and the halving having “come and go,” with out resulting in important upward worth motion.
Is The Bitcoin Bull Run Over?
Loukas observes that whereas conventional markets are performing robustly—with “the inventory market making all-time highs seemingly each week” and “even gold making large all-time highs”—Bitcoin continues to “languish,” and altcoins are “just about dying a sluggish loss of life.” He notes that “the one factor on the market that’s actually working is the actually speculative memecoins,” contributing to damaging sentiment within the crypto house.
Nonetheless, he considers this growth to be “type of regular,” emphasizing that regardless of these challenges, Bitcoin stays “near the all-time highs from the prior cycle.” Discussing the eight months of consolidation in Bitcoin’s worth, Loukas interprets this era as a bullish signal. “Eight months of consolidation is definitely fairly bullish if the timing is correct within the four-year cycle. Sentiment is correct, it’s been reset; fundamentals, macro, I believe all of them look proper,” he states.
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Loukas additional highlights that the market is “23 months in” for the reason that lows of the final cycle in November 2022, “simply shy of a 24-month or 2-year anniversary of this cycle,” which is because of conclude round November-December 2026. He acknowledges the “fairly a little bit of worry that’s form of crept into this market” following a “very bullish, very frothy interval” from the ETF approval leak in September-October 2023 as much as the height in March 2024.
One of many principal fears, in keeping with Loukas, is that Bitcoin made its final all-time excessive seven months in the past in March, and since then, “we’ve been forming these decrease highs on the month-to-month and in addition to some extent a decrease low construction.” This has created nervousness amongst traders who “entered the market means too late, ready for affirmation,” solely to search out themselves “locked out when the market went on this 5 straight months transfer,” with out offering a possibility to purchase throughout a dip.
He factors out that many traders have “rolled right into a bunch of altcoins on this later interval that at the moment are down 50, 60, 70%,” resulting in a state of affairs the place, regardless of Bitcoin being “nonetheless up round 3x off the lows,” lots of people really feel they haven’t “extracted any form of worth out of this cycle” or have even “misplaced cash over this era.” Loukas considers this situation to be “fairly regular from a cycle construction perspective.”
He emphasizes that in this bullish section, the market didn’t expertise a “typical 30% decline at any given level,” with the “largest declines” being “principally time-based and have been solely round about 20% from peak to trough earlier than making a brand new excessive.” This atypical habits “threw lots of people off” and “made it troublesome for folks to get in,” as they have been “trying to purchase on a dip which by no means actually eventuated.”
Loukas means that the present consolidation is a mandatory section to “utterly reset sentiment in an effort to put together for the subsequent section of this four-year cycle.” He finds it important that Bitcoin is “sitting right here 23 months, simply round 20% or so off the all-time highs of the final four-year cycle excessive again in 2021,” which makes it really feel “extra primed for the subsequent section of the four-year cycle than the rest.”
He additionally attracts parallels with earlier cycles, noting that from the cycle low in December 2018 to the primary level the place Bitcoin made a brand new excessive, “it took 23 months to get to the worth four-year cycle excessive to exceed that.” Comparable patterns have been noticed in earlier cycles, with timeframes of “round 25 months” and “round 22 months” to succeed in new all-time highs. In distinction, the present cycle achieved this milestone “in simply 16 months, a lot sooner,” which he attributes largely to the ETF information that “compelled consumers in earlier within the cycle than regular.”
Loukas believes that this accelerated timeline has created a dynamic the place “we now need to rotate quite a lot of cash,” permitting “quite a lot of whales, quite a lot of old-timers” to “unlock” and “exit and rotate,” whereas “institutional gamers, bigger account gamers have been accumulating these cash on this interval.” He views this as “a matter of time greater than the rest,” decoding the present interval as a course of the place the market “finally ends up erasing all that bullish sentiment” from the earlier section, thus permitting “a whole separation from one section of the cycle to this section of the cycle”—basically a “mid-cycle decline.”
When Will BTC Value Break Out?
Total, Loukas stays largely optimistic: “To this point on this four-year cycle, I see nothing that has modified that trajectory, nothing within the profile or the construction that tells me that this cycle is any completely different to the final cycles.”
He cites a number of components supporting his bullish outlook, together with “huge inflows into Bitcoin, principally institutional gamers,” and the absorption of enormous sell-offs by entities like “the German government” and “the US government,” which haven’t considerably impacted the worth. Loukas emphasizes that “worth is down solely 20%; it’s held up effectively.” He additionally mentions that “the ETF remains to be there; it’s going to be pushed by the unbiased advisor channels,” and “the timing is there; the macro, the basics are there.”
Loukas is especially excited concerning the cyclical patterns, noting that “the third yr of every of those 4 cycles is the place the magic occurs.” He explains that “the primary yr surprises everyone, that makes up quite a lot of floor. The second yr looks as if it stalls as a result of it consolidates that first yr of positive aspects. And the third yr is the mania yr. And proper now, starting subsequent month, we now have the mania yr that’s on deck.”
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He predicts that “throughout the subsequent 90 days… we’re going to interrupt out of this consolidating vary; we’re going to interrupt to the upside.” As soon as this occurs, he believes Bitcoin “isn’t going to look again,” anticipating a interval that “might solely see one or two pink month-to-month candles and principally inexperienced candles.” Whereas he refrains from offering particular worth targets, he acknowledges that reaching “someplace between $120,000 and $180,000 additionally appears very cheap.”
Loukas emphasizes that the main target must be on “time and sentiment,” aiming for a transfer “within the vary the place prior cycles have peaked,” which has been “very constant at round month 35 for the reason that final low.” This timing would place the projected peak round “October of 2025,” giving “one other 12 months to an anticipated or projected peak.” He notes that this isn’t set in stone and that the height may come “three, 4, 5 months earlier,” as market actions “can are available many alternative flavors.”
Turning to the speedy future, Loukas admits that the subsequent two months are “a bit of murky,” with “quite a lot of components nonetheless at play proper now.” He brings up the upcoming US election on November 4th, mentioning that “Trump and the GOP have actually been pushing crypto and Bitcoin,” and that “the market is definitely going to reply very, very favorably to an election win by the GOP purely due to their stance on crypto.” Nonetheless, he clarifies that he doesn’t suppose “it issues one bit” who wins, as Bitcoin has thrived even when “governments have been very hostile in the direction of it.”
Loukas speculates that the market would possibly “development sideways into that interval in November,” and {that a} important transfer may not happen till after the election concludes. He means that “we nonetheless have round three to 4 weeks of some trending sideways motion,” and he can be “extremely shocked if this market can push into the $70,000s earlier than the election right here within the US.”
At press time, BTC traded at $60,699.
Featured picture created with DALL.E, chart from TradingView.com
