Crypto analyst Bob Loukas has addressed growing concerns about Bitcoin's market performance. In a recent video analysis, he argues that the current consolidation phase is a precursor to a significant upward movement.
Bitcoin has been languishing near its previous cycle's highs for eight months. This has sparked fear in the market. Traditional assets are thriving, with stocks and gold reaching new peaks, meanwhile, Bitcoin remains stagnant and altcoins are struggling. Loukas views this consolidation as bullish. "Eight months of consolidation is actually pretty bullish if the timing is right in the four-year cycle," he states, noting that sentiment has reset and fundamentals appear strong.
The market is 23 months into its cycle since the November 2022 lows. Loukas points out that previous cycles took similar timeframes to reach new all-time highs. This cycle achieved that milestone in just 16 months, which he attributes to ETF-related news. Current market dynamics reflect a necessary reset, according to Loukas. He believes this allows for a rotation of coins from long-term holders to institutional players. "It's a matter of time more than anything else," he explains.
Loukas remains optimistic about Bitcoin's trajectory. He cites massive institutional inflows and the market's resilience to large sell-offs as supporting factors and predicts a breakout within the next 90 days, potentially reaching between $120,000 and $180,000.
The immediate future remains uncertain. Loukas suggests the market might trend sideways until after the US election in November. He expects significant movement to occur post-election, regardless of the outcome.