Given the recent surge in U.Today – there is ongoing debate about whether the market has entered a supercycle. Economist Alex Kruger argues that this cycle is unique, pointing to a revolutionary shift in the way the crypto sector is viewed and integrated into the international system.
Bitcoin’s consistent growth trajectory and recent breakthrough of $100,000, solidifying its position as the market leader, lends credence to this opinion. This trend shows a clear breakout from the previous descending channel, seen on the Bitcoin chart below. Bitcoin has been steadily rising over the past few months and is currently consolidating between $98,000 and $100,000.
This consolidation suggests market participants are taking profit and creates short-term resistance at the six-digit level. However, Bitcoin remains supported by strong fundamentals and there is a lot of buying activity at lower levels, especially between $93,000 and $84,000. Higher highs and fewer retracements indicate a longer bullish phase, implying a supercycle.
Supercycles rely on fundamental changes such as institutional adoption, regulatory clarity, and technological advances, as opposed to traditional cycles that are driven by speculative hype. These factors seem to be working in Bitcoin's favor and positioning it for future growth. Additionally, this chart shows a significant increase in trading volume during the recent price spike, indicating high market interest.
But a gradual slowdown in momentum in recent days suggests investors are waiting for further catalysts. A breakout of the next key resistance level at $105,000 could push us into the $120,000-$140,000 range in the coming months. Krueger expects it could become the local top by March, depending on market sentiment and macroeconomic conditions.
However, this does not necessarily mean the beginning of a bear market. As a result of increasing use cases and increased adoption, Bitcoin is likely to continue to exhibit a rather bullish structure. As long as market conditions are favorable, Bitcoin can continue to grow, which supports the supercycle hypothesis based on its current trajectory and market dynamics.
This article was originally published on U.Today
