Veteran crypto asset trader Chris Burniske believes cryptocurrencies appear poised for a new bull run after months of correction. Why investors can breathe easy
Upside Potential in Technical Analysis
Chris Burniske stated in a statement on the social media platform X that cryptocurrencies have cooled down sufficiently after the rise that lasted from late 2023 to early 2024.
“Cryptocurrencies are coming off an ‘early bull’ correction that is textbook technical analysis. While the path is still choppy, don’t panic and even if you’re on the sidelines, it’s not too late.”
Favorable Market Conditions and Growth
Burniske emphasized that the positive conditions for cryptocurrencies are not only due to interest rates and liquidity. He also noted that the maturation of the infrastructure, the experiments that developers do with applications, and user growth are also important.
“Not only are positive interest rates and liquidity promising for our asset class, but also the maturation of the infrastructure and developers experimenting with applications. The bullish sentiment is also supported by continued user growth, with active addresses increasing by more than 3x in the last year.”
Global Liquidity and Market Expectations
Last month, Burniske said that the increase in global liquidity was preparing cryptocurrencies for major upward movements.
“Amid neutralizing investor sentiment and deleveraging, most quality crypto assets have made significantly higher lows than we see in 2023. Meanwhile, central banks will be forced to ease globally—a little more turbulence is possible in Q3, but regardless, what I see is a nice early bullish setup.”
Bitcoin and the broader crypto market surged last Wednesday after the Fed cut interest rates for the first time since 2020. The cut was more than 25bp, similar to 2007 and 2000, and we have rarely seen such a large start to a cut since 1980.
At the time of writing, Bitcoin (BTC) $62,877 It is trading at $62,707, up nearly 30% from its six-month low of $49,000 hit in August.
Given the current market dynamics, cryptocurrencies are likely to enter an uptrend supported by both technical and fundamental factors. In addition to infrastructure developments and increased user activity, the impact of global economic conditions could rekindle investor interest. Of course, the price may not always move in the direction it is supposed to go, cryptocurrencies are always full of surprises.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
