Discussion on Bitcoin's Potential Supercycle

Discussion is ongoing about whether the market has entered a supercycle due to Bitcoin's recent surge. Economist Alex Kruger asserts that this cycle is unique, pointing to changes in how the cryptocurrency sector is viewed and integrated into international systems.

Bitcoin's Growth Trajectory

Bitcoin's consistent growth and recent break above $100,000 strengthens this view. The trend shows a breakout from its previous downward channel. Bitcoin has been steadily rising over the past few months and is currently consolidating between $98,000 and $100,000.

This consolidation creates short-term resistance at the six-figure mark as market participants begin taking profits. However, Bitcoin remains backed by solid fundamentals, with significant buying activity at lower levels, especially between $93,000 and $84,000. Higher highs and minimal retracements suggest a longer bullish phase, implying a potential supercycle.

Characteristics of a Supercycle

A supercycle differs from typical cycles, which are driven by speculative hype. It relies on fundamental changes like institutional adoption, regulatory clarity, and technological advancements—all of which seem to favor Bitcoin's growth. This is further evidenced by increased trading volume during recent price spikes.

Investor Sentiment and Future Projections

The recent slowdown in momentum suggests that investors may be waiting for additional catalysts. A breach of the next significant resistance level at $105,000 could lead to a price range of $120,000–$140,000 in the coming months. Depending on market sentiment and macroeconomic dynamics, Kruger suggests a possible local top by March.

Conclusion

This does not necessarily indicate an impending bear market. Due to its expanding use cases and growing adoption, Bitcoin may continue to display a bullish structure. Given favorable market conditions, Bitcoin has the potential to sustain its upward trajectory, reinforcing the supercycle hypothesis.

This article was originally published on U.Today.