Everything Is in the Bull’s Favor, So Why Isn’t Bitcoin Rallying? Analysis Firm Calls It “The Calm Before the Storm”

Cryptocurrency analytics company The DeFi Report has published a comprehensive assessment of the current state of Bitcoin and the overall cryptocurrency market.

The analysis, titled “Crypto Has a Perfect Bullish Setup… So Why Isn’t It Exploding?”, examines the contradiction between the bullish expectations in the market and price movements.

The cryptocurrency market is experiencing one of the strongest “bullish” setups in history, in light of macroeconomic data and cyclical indicators. However, the major price breakout that investors have been waiting for has not yet occurred. The DeFi Report analyzed the reasons for this situation and the roadmap ahead for the market.

According to the analysis, the performance of Bitcoin and crypto assets is directly related to global liquidity cycles. Changes in central bank (especially FED) monetary policies are the main factor determining the market’s next major move. While increased liquidity is generally the biggest driver for cryptocurrencies, the current “wait-and-see” policy is putting downward pressure on prices.

The analysis, which highlights the supply-demand balance in the market, notes that the amount of Bitcoin on centralized exchanges is at its lowest levels in recent years. This indicates that investors prefer to hold their assets in cold wallets (HODL) rather than sell. Such a tight supply means that even a small increase in demand could quickly drive the price up.

It is stated that institutional capital inflows have transformed the market following the approval of spot Bitcoin ETFs. However, the impact of these inflows has been offset by miner sales and profit-taking by some large accounts. The analyst argues that institutional adoption has laid a solid foundation for a long-term uptrend.

The section titled “Why isn’t there a breakout?” highlights market uncertainties. Global geopolitical tensions, election cycles, and concerns about economic recession are among the factors limiting risk appetite. However, according to The DeFi Report, all this silence resembles the calm before a major storm.

*This is not investment advice.