Bitcoin's New Era: Has the Bottom Arrived, or Is the Cycle Closing?

The recent movements in Bitcoin’s price are once again attracting the attention of investors. Bitcoin faced a sharp correction of %27 last week, during which it retraced a significant portion of its gains for the year, and the market is now focusing on cycle discussions again.

According to the latest report from QCP Capital, the decline in Bitcoin indicates a risky period, along with technical, macro, and volatility indicators. The Bitcoin price closed the week below 100,000 dollars, significantly disrupting market sentiment. Analysts relate this situation to the view that the much-discussed four-year cycle has come to an end.

Currently, Bitcoin is trading just above the 92,000 dollars support level. QCP reminds that this level formed a strong base in the last quarter of last year and the first quarter of this year. Additionally, the fact that this area coincides with an unfilled price gap in CME futures increases the likelihood of a short-term bounce.

However, due to intense selling pressure and weak liquidity returning to the market, it is noted that these bounces may remain limited. The macro data flow, along with the weakening of U.S. indices and the VIX index staying above the level of 20, supports anxiety in the crypto space.

Volatility indicators show that investors are seeking protection against declines. The front-end volatility in the options market has risen above the 50 level, and the slope being noticeably in the Put direction indicates that investors are adopting an increasingly cautious approach. If the 88,000 dollars and then the 74,500 dollars supports are broken, it is stated that the medium-term trend may be completely distorted.

For now, a potential bounce remains on the table, but QCP emphasizes that this pressure continues to be downward. The critical levels that investors should keep in mind stand out as the 92,000 dollars support along with 88,000 dollars and 74,500 dollars levels.