Analyst warns of risk of Bitcoin bull cycle ending

According to CryptoQuant Arab Chain analyst, Bitcoin may be in the final stage of its current growth cycle. He noted that in July and August, Binance received BTC from large holders worth about $5 billion, which often precedes large-scale sales.

At the same time, the exchange is seeing growth in deposits from retail investors. The expert noted that their late entry into the market historically coincides with the end of bullish phases, when large players use demand to lock in profits.

Despite the influx of funds, market momentum is weakening. BTC is trading in a sideways range, indicating a decline in buying momentum and a possible exhaustion of growth.

If the current trend continues, selling pressure could cause a correction to $112,000. At the time of publication, the price of Bitcoin is $116,586.

Earlier, on August 8, CryptoQuant research director Julio Moreno noted that BTC had entered a “bullish pause” phase. According to him, new catalysts are needed for growth to continue, including a possible Fed rate cut in September.

Experts agree that the future trajectory of Bitcoin will largely depend on the actions of major holders and macroeconomic policy.