The prominent cryptocurrency Bitcoin (BTC) has surged past $117,000 following the Federal Reserve’s decision to cut interest rates last night.
As optimistic forecasts for Bitcoin persist into October and beyond, one analyst has suggested that BTC may be nearing the conclusion of its current bull market.
In a recent analysis, CryptoQuant’s Axel Adler indicated that while the Bitcoin bull run is ongoing, it appears to have entered its concluding phase.
The analyst pointed out that Bitcoin futures are currently trading at a notable premium compared to spot prices, which he interprets as an indication that BTC is approaching the end of its bullish cycle.
Adler observed a consistent trend where futures prices for BTC have been higher than spot prices. He noted that this phenomenon typically occurs just before significant events like FOMC meetings.
This disparity between futures and spot pricing is often seen in late-stage bull markets, according to Adler’s insights. Under these circumstances, he estimates there’s a 70% chance of either gradual price increases or sideways movement for Bitcoin over the next fortnight.
Recently, Adler mentioned that with rising Bitcoin prices comes an increase in new long positions. This trend could potentially drive BTC towards achieving new all-time highs.
“If we observe upward trends in Bitcoin price along with base and open interest (OI) over the coming days, it indicates an uptick in new long positions,” he stated. “This could signal an increased likelihood of forming a new peak.”
This latest assessment aligns with his earlier predictions from September when he forecasted that peak cycle activity might occur between October and November.
*This content does not constitute investment advice.