Following our latest article, where we shared a bearish analysis in the short term, we now present an alternative perspective from the bulls.
Although the market’s direction may seem unclear, in the long-term picture things are immensely bullish. A financial revolution fueled by cryptocurrencies is already underway, and it’s merely a matter of time before blockchain and smart contract technologies become a part of our everyday lives.
It’s calculated that we are still relatively early in Bitcoin’s adoption cycle, meaning there is plenty of growth left in the next decade. With that in mind, let’s start the article by taking a look at the supercycle theory.
The supercycle theory
Many analysts agree that we are in a supercycle and will witness a double or triple peak before this bull run is over. While we may still have some months of consolidation ahead of us, it is unlikely we will witness an extended bear market as we did after the previous 2017 bull run.
The reasoning behind this supercycle theory is that this current market cycle shares a lot of similarities with the 2013/2014 cycle, where there was a double peak separated by roughly a year. If this theory is correct, we might see another cycle top later this year or at the start of 2022.
This scenario is dependent on Bitcoin holding the previous support level of $29,000. If Bitcoin breaks down below this support, we will likely trend lower and see a more prolonged consolidation phase before reaching new all-time highs.
Institutions are in this time
As Tesla broke headlines with its purchase of $1.5 billion worth of Bitcoin back in February, it became clear that this cycle was going to be different. Institutional money has been pouring into the crypto markets and will continue to do so as companies look for ways to hedge their positions against fiat inflation.
There is also a growing interest from retail investors forcing banks to make Bitcoin investing available to their customers. The hype is still very much alive, and even if September ends up being a red month, the crypto market is poised to continue its expansion in the mid to long term.
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