The post On-chain data reveals trend of shorter bull cycles appeared on BitcoinEthereumNews.com.

The latest Bitcoin (BTC) pricing and on-chain data suggest traders may have to adapt to shorter bull cycles. Despite the lack of a significant drawdown, BTC rallies are also happening faster.  Periods of bullish elation are becoming shorter, as indicated by both price action and on-chain data. The current period of expansion showed much shorter stages from accumulation to market peak.  Bitcoin (BTC) can still rally from $53,000 to above $57,000 in a single day, supported by more than $118B of Tether (USDT) and additional fiat and crypto pairings. Yet the cycles of peaks and drawdowns may be happening closer together.  The 2024 bull market happened in an already mature ecosystem, lacking the almost exponential adoption and wallet growth of previous cycles. This time, the role of whales and experienced traders meant BTC was behaving as a controlled market rather than being in a period of price discovery with new buyer inflows.  BTC price moves coincide with low on-chain activity Despite achieving an all-time high in 2024, BTC also goes through relatively low on-chain activity. There is a slow trend of decline in active wallets, with fewer needs to transact in actual coins on-chain. BTC is also abandoned as a tool for payments, replaced by stablecoins. The growth of new BTC wallets was also slower in 2024 despite the inflow of Ordinals and Runes.  Based on the 21-week moving average, BTC is already in bear market territory. The $61,100 21-week EMA has been abandoned, and BTC has trouble returning above $58,000. For now, BTC is already winding down from its last short-term rally above $64,000.  In the short term, the ETF drawdowns are sending a bearish message. New stablecoin mints do not always correlate with BTC price action, as, for instance, TRON-based USDT is redirected to other markets. The supply…

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Filed under: News - @ September 10, 2024 8:20 pm