These Charts Show Bitcoin Bull Run Still Has More Upside Despite January Dump

So far, January has been a tough month for bitcoin (BTC), with the asset falling from $102,000 to the $91,900 range. Amid this plunge, the crypto market has been tense, and investor sentiment has returned to negative levels, as seen in August 2024; however, market analysts insist the bull season still has more upside left.

While market participants are speculating that BTC may have hit its top for this bull cycle, the pseudonymous crypto analyst Axel Bitblaze says this dump is just another shakeout before the next leg up. To substantiate their claim, the analyst outlined key charts that show BTC is yet to end its rally for this bull phase.

BTC Has More Upside

One major metric highlighted by Bitblaze is historical data on bitcoin’s performance in January following halving years. The market expert noted that BTC dumping in January has become a common occurrence in post-halving years. 

Bitcoin had its second and third halving events in 2016 and 2020, respectively. The asset fell from $1,185 to $800 in January 2017 and from $42,000 to $28,000 in January 2021. This year, it has plummeted from $102,000 to $92,000. Interestingly, BTC skyrocketed in the months following the 2017 and 2021 dumps.

Another indicator to watch for is a plunge in bitcoin’s dominance. Data from the current cycle indicates that BTC dominance has already topped and is not dropping. This metric fell from 62% to 54% in November/December, and altcoins started to rally. A further drop to 50% or 45% could send altcoins to unprecedented highs.

Whales Are Accumulating Again

Since many market participants are using ether’s (ETH) underperformance in this cycle to substantiate their claims that BTC has reached its top, Bitblaze compared the cryptocurrency’s current pattern to one seen in 2021. The analysis revealed that ETH is currently 33% down from its all-time high (ATH)—just like it was in 2021—and since it began to see a major pump in February 2021, the same is expected in this cycle.

Moreover, altcoins have historically rallied the most after past United States presidential inauguration events as new administrations allow for a rise in liquidity. This pattern was seen in 2017 and 2021, with the altcoin market cap increasing 28x and 400%, respectively. 

Furthermore, on-chain indicators show that BTC whales have begun to accumulate again. This is often a good sign. 

Bitblaze believes BTC could still drop to the $86,000-$88,000 range amid the correction; however, a bullish uptrend could emerge after Donald Trump takes office as the U.S. president.