Today, I wanted to take a moment to zoom out and reflect on the current state of the crypto market. Let’s gain some perspective on where we are in the cycle, what we’ve accomplished so far, and where we might be headed in the coming months.

As always, you can catch my full analysis in the video below or continue reading for a quick summary:

Price Action Causing Negative Sentiment

Lately, I’ve noticed a lot of negative sentiment in the crypto community — especially on platforms such as Crypto Twitter. People are getting caught up in the moment and failing to see the bigger picture.

We’ve been range-bound trading for a couple of months, and every time the price dips to the lower bound of that range, people turn bearish.

This is not the ideal way to trade. It’s essential to keep your emotions in check and approach the market analytically.

Today, I want to dispel some of that negativity. Let’s start with a look at the Bitcoin (BTC) chart to understand where we are in the cycle, the key points to watch, and what we’ve accomplished.

Bitcoin Update

I’ve pulled up a weekly chart of Bitcoin, extending back to the last cycle in 2021. The crypto market operates in four-year cycles, consisting of a bear market year, a neutral year, and two bull market years, with transition periods between each phase.

In 2022, we experienced a bear market with significant losses. The market bottomed out around November. Despite some bullish trends, technically, 2023 was a neutral year.

The current transition period, moving from the first leg of the bull market to the second, began around March 2024.

Bitcoin’s price dropped from around $73,000 to just above $58,000, a 20% correction that’s relatively minor in crypto terms.

This range-bound trading since March has rattled many investors. However, it’s crucial that we recognize it as a cooling-off period rather than a cause for panic.

Since mid-March, we’ve been trading within a range, establishing a base around $58,000. This neutral phase is part of the transition to the second leg of the bull market.

As long as Bitcoin stays above the $58,000 mark, we’re still in a healthy transition period. The worries and fears are just noise until we see a decisive break below $58,000 or above the current downtrend.

Broader Crypto Outlook

Now let’s shift our focus to the broader outlook. The political and regulatory environment for crypto has never looked better. Despite numerous lawsuits, the Securities and Exchange Commission (SEC) has yet to win a significant case against major crypto firms.

Multiple branches of the U.S. government are partnering with companies such as Coinbase (NSDQ: COIN) to manage their crypto assets, signaling growing institutional acceptance.

Since the pivotal meeting at Mar-a-Lago, there’s been a noticeable uptick in political support for cryptocurrencies. Republicans have embraced a pro-crypto stance, while Democrats are moving toward a more neutral approach.

Depending on the outcomes of the upcoming election, this trend could continue to improve, fostering a more favorable environment for crypto.

Fundamentally, the crypto market is stronger than ever. Institutional adoption is on the rise, with companies such as Sony (NYSE: SONY) entering the market and the introduction of Bitcoin and Ethereum (ETH) exchange-traded funds (ETFs).

These developments provide new avenues for institutional investors, enhancing market stability and growth.

Conclusion

It’s essential to zoom out and maintain perspective. The crypto market is in a transition period, but the long-term outlook remains positive. Political and regulatory conditions are improving, and fundamental indicators are strong. It’s vital to stay focused on your investment plan and not get distracted by day-to-day fluctuations.

Thank you for tuning in to Crypto Investing Daily. Keep an eye on the bigger picture, and remember that in the long run, the trajectory for cryptocurrency remains upward.

Editor’s Note: Crypto is making ordinary investors rich, and it also serves as an inflation hedge. But you need to make your move now before the next leg-up in the crypto bull market of 2024. Every day you wait is literally costing you thousands in profits.

If you’re worried you can’t figure out crypto… don’t be. Our in-house crypto expert, Alex Benfield, will walk you through everything you need to know about crypto, step by step.

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This article previously appeared on Investing Daily.