Crypto Market Stuck In A Rut? Here’s Why 2024 Bitcoin Breakout May Be Delayed
September 05 2024 - 2:00AM
NEWSBTC
The crypto market has been struggling with prolonged sideways
movement in recent months. Since March 2024, the market has failed
to make a successful breakout above previous peaks, leaving
investors frustrated. According to a recent report by CryptoQuant
analyst Crypto Dan, this continuous pattern of stagnation leads
many to wonder when the market might see a significant rebound.
While there are some short-term factors that may provide relief,
the overall sentiment in the crypto space remains cautious. Related
Reading: Bitcoin Eyes $68,000 In September: Could This Be The
Turning Point? Is The Crypto Market Stuck? One key observation made
by Crypto Dan is the emergence of a “Dead Cross” on the short-term
and long-term SOPR (Spent Output Profit Ratio) moving averages.
This is a bearish signal in technical analysis, indicating that
selling pressure is likely to outweigh buying pressure. It suggests
that traders may be locking in profits rather than betting on
further gains. The persistence of this trend as highlighted by Dan
raises questions about whether a meaningful recovery is on the
horizon, or if the market is headed for a longer period of
consolidation. Looking ahead, one potential catalyst Dan pointed
out for the market movement is the upcoming US Federal Reserve
meeting on September 18, where a base rate cut is anticipated.
Historically, rate cuts have tended to inject positive sentiment
into financial markets, including cryptocurrencies. A reduction in
interest rates could result in an influx of liquidity into riskier
assets like Bitcoin and altcoins, as investors seek higher returns.
This could trigger a short-term rally, offering some relief from
the stagnation observed in recent months. However, Dan warns that
while a short-term rebound might occur, it may not lead to a
sustained bullish trend unless there is a significant shift in
market conditions. When Will A Breakout Finally Happen? The
fundamental outlook for the crypto space remains mixed, with
macroeconomic factors such as inflation and recession concerns
still weighing heavily on investor sentiment. If these factors do
not improve, Dan noted that it is likely that frustrating,
low-volatility movements could persist well into 2024. In his
words: Due to the expected US base rate cut on September 18, a
short-term rebound due to positive market sentiment can be
expected, but if the market atmosphere is not significantly
reversed, it is highly likely that frustrating movements will
continue in 2024. Although actively monitoring the crypto market at
this current state may feel discouraging. However, Crypto Dan
emphasizes that “patience” will be key for long-term investors.
Related Reading: Bitcoin’s Breakout Blueprint: Analyst Reveals
Roadmap For Imminent Surge According to Dan, while the potential
for a short-term rally exists, broader market trends suggest
that a more meaningful and sustained uptrend may not
occur until 2025. Featured image created with DALL-E, Chart
from TradingView
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