Disclaimer

This is not financial advice and should not be taken as such. This is merely an opinion article.

Introduction

The Goldilocks Principle

Since September, the crypto landscape has appeared promising, characterized by consistent month-over-month growth and positive sentiment surrounding key economic developments in the market, such as the Bitcoin halving and the positive government stance on the Bitcoin ETF. This period could be described as a "Goldilocks window," a time of steady and continuous growth. However, since April, the market dynamics have shifted. Resources are being reallocated away from altcoins, and there is less liquidity in the market. This has led Cobie, one of the most respected voices in crypto, to suggest that this favorable window may now be closing and causing a stir on CryptoTwitter.

Figure 1 - Cobie Tweet

Although these are the opinions of one individual, is it a sign of things to come? Wevr tends to agree. There will likely be fewer opportunities to make significant money in crypto, as the team at wevr.ai has echoed in previous blog posts. However, as with any market, there are still opportunities to outperform and we hope to assist you in that process via giving you the best up to date charts.

Reasons for market slowdown

• Run up without mainstream attention Over the past eight months, we have observed consistent upward price movement with little to no setbacks, as illustrated in Figure 2. Figure 2: On-Chain Data Price Chart Analysis

Although not as parabolic as in previous cycles, the market still experienced continued growth. Despite on-chain metrics not indicating a significant increase in adoption, the market climbed. Without new investors entering the market, buyer fatigue will inevitably set in. As we have seen in recent days, that fatigue is beginning to manifest.

longest length growth cycle for bitcoin ever.

This period from July 2023 to April 2024 has been the longest growth cycle for Bitcoin ever. Using off-chain price data from wevr.ai , this cycle’s duration surpasses even the stretch from October 2020 to May 2021, which was marked by significant pullbacks and volatility.

Crypto investors are accustomed to a six-month bull run from previous cycles; however, this cycle has extended to 8-9 months, albeit less excitingly. Consequently, market participants are beginning to realize that a second upward leg may not occur overnight, which has dampened the sentiment surrounding Bitcoin recently.

This shift in sentiment is particularly notable given the widespread belief that the Bitcoin halving would act as a catalyst for a spike in mainstream interest and, consequently, in Bitcoin's price.

How to outsmart the market

So now that the market is not as volatile investors need to be more sophisticated with how they trade

But what does that entail?

• Being able to trade for yourself, a key part of any trader is to find a niche that you are an expert in, Be it onchain macro analysis, trading shitcoins, Scalping, Trading ordinals, Flipping NFTs.

• Consume the right information, Often, people are influenced by bad actors who have their own agendas. To succeed, it's essential to consume the right information, which consists of objective facts and truths. Fortunately, wevr.ai provides fast and accurate on-chain data. This type of data empowers users to make trading decisions based on actual market conditions rather than hyperbole.

• However, having the right information isn't always enough. Markets can behave irrationally. It is often wise to find ways to gauge market sentiment. A good rule of thumb is to sell when others are celebrating and to buy when others are suffering. Wevr also offers sentiment analysis of blockchain articles, adding another layer of insight for our users.

• Find your own alpha, The best alpha is the stuff unknown to others, Use tools like dune, flipside or Wevr.ai Query tool to do research, we have lots of documentation right around the corner to help you learn SQL and query our Huge multiple Terabyte database of blockchain data.

Reasons For Positivity

Although the market seems to not be as positive as it was 4 months ago there are still some reasons for positivity

• Longer cycle means more time to learn: The team at wevr appreciates that now the cycles have become longer there isn't a panic to FOMO into the market, This can allow participants more opportunities to scale into positions and gain conviction and information on potential investments rather than rushing into buying the most marketed coin. -- Market Maturity With the market becoming more mature interms of price action it will give more credence to the long term stability of cryptocurrencies and will give valid arguments against stronger regulation which is always a negative especially for open markets like cryptocurrencies.
• More developments: Because the market has yet to burst developers have been able to develop for longer and create more breakthroughs, with the long term goal of having blockchain technology and onchain technology used by everyone without it having being labelled as "CRYPTO" the more time devs have to create better products more likliehood this will happen,
• More Data: market participants are also learning and adapting to these developments as seen in figure 3: Figure 3: On-Chain Pairs Created Analysis

A lot of market participants have moved to trading on layer Two blockchains shown via the decrease in layer 1 pairs created activity, This has shown a higher level of sophistication by investors which will lead to better outcomes in the future.

Conclusion

It is clear that the cyrptocurrency landscape continues to evolve , presenting both significant opportunities and challenges for investors. At Wevr, we are dedicated to equipping our users with cutting edge tools and indepth market insights to empower and assist decision making during difficult market conditions, enabling investors to get their best outcomes.

We encourage our clients to take full advantage of the extended market cycles and the educational resources available at Wevr. As the market matures, these longer phases provide valuable time for thorough analysis and strategic planning, enabling investors to make more informed decisions and optimize their investment outcomes.

To stay ahead in this dynamic market, visit us at Wevr and explore our diverse range of services tailored to enhance your trading strategies. Engage with our community on Twitter and keep up with our Crypto insights blog for the latest insights and updates. With Wevr, harness the full potential of blockchain technology and maximize your investment returns in this complex and ever-changing environment.