The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

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Original author: Crypto, Distilled

Original translation: TechFlow

When will the consolidation end? Despite the general pessimism and anger, $BTC is only 15% below its high. Famous trader @BobLoukas offers hope:

The darkness before dawn, mid-cycle reaccumulation, and the emergence of cycle highs

Here are his main points.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

Monthly chart:

We reached the all-time high of the previous cycle in month 16, while the previous cycle took more than two years. We are now in the third month of sideways trading.

Historically, $BTC has paused after reaching its all-time high before reaching its final cycle peak. A longer period of sideways movement means the next rally will be healthier and stronger.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

Weekly chart:

It is now in a 14-week consolidation following the ETF news, down 12% from its highs. This volatility is expected after the rally that nearly doubled from its recent lows in January 2024.

Notably, the 7-week cycle low was $38,000 in January (where the price doubled).

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

Why didn鈥檛 the market go higher?

Bob points out several key factors:

  • Whales from the previous cycle sold near $60,000

  • Concerns about potential monthly doubling top

  • GBTC outflows (selling pressure)

  • Transfer from on-chain assets to ETF assets

  • ETF expectations are priced in early

  • The 2023 Q4 rally was driven by ETF hype

When will the shock end?

Stay patient, it has risen 3 times since September 2023 and needs to pull back to accumulate momentum.

Similar to the doubling post-cycle low in the first quarter of 2023, a broad base formation preceded the fourth quarter鈥檚 uptick.

The volatility may continue until July or August, completing the bottoming process.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

When might the market peak?

Based on the 4-year cycle, the peak may still be far away.

Past cycles have typically taken 33-35 months from low to high.

According to this model, October 2025 is possible (16-17 months away).

The large gap between the 10-month moving average and price suggests that a pullback may be needed.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

Why is everyone so angry?

Bob explained that this bull market feels tough for a lot of people:

  • Chasing speculative altcoins (competition among investors is fierce).

  • Like the previous cycles, wait for a 30-35% drop and buy at the highs after missing out.

Possible trends

We may see the next local bottom soon, possibly towards the end of the month.

Bullish signs include higher lows and well above the January 2024 low, showing strength in the market.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

After this local bottom, one scenario is to sweep it and retake the highs.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

The second possible scenario is a continuation of the volatile price trend.

This phase may last until September, forming a local bottom but not breaking through the historical highs.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

The third possibility is another 30% drop, which has been typical in past bull markets. Similar to 2017, but now with ETFs, which is an important difference.

Some people think that it is impossible to reach around $55,000 with ETFs, Bob strongly disagrees.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

Trend Convergence

All three trends converge around October, November, and December 2024, with the goal of breaking out of the all-time high and rising further. During this period, Bitcoins performance could significantly affect the ROI of altcoins.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

Emotional reset:

Bob believes that the restart of market sentiment after the surge in April is positive. On-chain data shows that coins are shifting to long-term holders. As new holders accumulate in the higher range, a solid foundation is formed. Dips may be buying opportunities.

Bobs Buying Strategy

Bob last bought near the cycle lows around $17,000. Now, he is eyeing potential buying opportunities in the $BTC range below $50,000. He suggests that those who are under-positioned can consider adding to their positions during this volatility.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

Macro Top in 2025

Bob expects the second phase of the cycle to be healthier. He believes the market highs will occur in the second half of the current cycle.

But the peak timing may vary, possibly in the second quarter of 2024 (30th month) or earlier, and unlikely to be the fourth quarter of 2025.

The Darkness Before Dawn: When Will the Consolidation End? What Will the Market Do in the Future?

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