• S2FX shows the model is at its second leg in its bullcycle.
• A trader’s behavior suggests that the currency bull will continue for at least another year.
• S2FX’s model creator highlighted how Bitcoin had a second up-ladder year following the network’s halving.

Bitcoin reached an all-time record October 2021 when it crossed the $67,000 mark following positive market outlooks. Bitcoin, a socially-influenced token, is more responsive to market news than stock prices. With market sentiment improving, following Bitcoin’s steady upward climb from $41,000, all the way to a new all-time-high, analysts have reiterated the bullish sentiments.

You can go all the way up

Bitcoin’s market ascendance was greeted with much enthusiasm. Crypto Twitter (NYSE:) pseudonym, and creator of the stock-to-flow model, PlanB, tweeted that Bitcoin’s second leg bull run has started. In the tweet, PlanB provides a diagram showing Bitcoin’s history in the month following the network halving. What’s more, PlanB shared a similar view before Bitcoin began its upward climb, arguing the bull run cycle will have “at least 6 more months to go.”

In a Bitcoin Fundamentals podcast, crypto analyst Willy Woo highlighted that the current bull cycle could last for another year, reinforcing PlanB’s data. Willy Woo argues that new investors have high net worth and are buying similar to those who believe in the all-up mentality. Furthermore, Willy Woo notes that these new types of buyers will help to push the price of Bitcoin “past six figures.”

Adding to the prolonged bull run, Arcane Research notes in their newsletter that the circulating supply on exchanges “sits at levels not seen since January 2018.” To add context to this statement, traders holding tokens in their wallets instead of exchanges means low selling interest. Finally, Twitter user Dux noted that people “underestimate how powerful this second leg will be,” indicating that Bitcoin is positively placed to reach new heights, given the abundance of catalyzing agents.

To The Flipside

• Bitcoin is often affected by global news including the Evergrande Investment fiasco.

Positive Narrative

Bitcoin fell from its high point. Glassnode data shows that traders have been taking the opportunity to rake in profits as Bitcoin reached its all-time high, while the much anticipated Bitcoin ETF could be an example of traders “selling the news.” Either way, market sentiment has reached its highest level in the past seven months, positioning users to take in profits after Bitcoin rallied by 45% over the past month alone.

Market sentiment has been shifting to a more positive place, so negative news about Bitcoin has not had an impact on the price. This is similar to April 2021, when most news articles framed Bitcoin positively. Thus, Mastercard (NYSE:) allowing banks and merchants on the Baakt network to provide Bitcoin and cryptocurrency offerings serves to strengthen Bitcoin’s price momentum.

PlanB, on the other hand, listed some catalyzing elements that might help Bitcoin break the $100,000 markup. These factors included, interestingly, the ETF push. Bloomberg intelligence argued that “we see BTC on track to trade like gold,” which will come with “narrow spreads and pressure volatility.”

The One Thing Nobody Wants To Hear

Retail mania is brewing as crypto trading enters a phase of excitement. The SEC warned that tokens like gaining massive exposure can increase the risk of scams and market manipulation. Qrypto Wolf emphasized that the “market will turn to red at any moment,” and speculative investment behaviors like Floki and Shiba Inu could lead to a sharp narrative switch.

A bear market could find a catalyst in the long-anticipated price of $100,000. Analysts point out that the May 2021 decrease in price was not indicative of a bearish market but rather an indicator of market accumulation. To avoid holding large amounts of tokens, which have reached their peak moments, such as Bitcoin, traders need to be careful.

Why you should care

The data suggests that Bitcoin will continue to rise, although it is possible for the market to turn bearish anytime. Bitcoin is influenced by external factors such as market perception, and a shift in the media’s narrative could lead to another plunge in Bitcoin’s price and, ultimately, the entire market.

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