Top Analyst Explains Why The Crypto Bull Run Is Far From Over

According to investor and analyst Lark Davis, Bitcoin’s current cycle and crypto bull run are far from being over. From RSI and NUPL to MVRV and Fibonacci retracement, several indicators have pointed to the fact that significant upside is still possible in this market.

Though short-term resistance at around $100,000 might test traders’ patience, Davis believes the eventual peak of Bitcoin would lie way above this level. With the market inching toward the next phase, traders and investors should be ready for a possible blow-off top in the upcoming months.

Crypto Bull Run Isn’t Over, Bitcoin’s Top Not Even Close, Says Lark Davis

The wider cryptocurrency market took a severe plunge in a post-December 18 Federal Open Market Committee (FOMC) meeting action but, according to analyst and investor Lark Davis, Bitcoin and the broader cryptocurrency market continue to display strong momentum, indicating that the crypto bull run is far from reaching its peak.

The US Federal Reserve cut its rates by 25 bps as expected but reflected fewer cuts in 2025 than earlier projections.

Bitcoin shed more than 5% and plunged below $94,000 before giving minimal signs of recovery. Other altcoins faced double-digit percentage losses across the board.

Investor and analyst Lark Davis highlighted that Bitcoin’s recent 13% dip, following a strong Q4 rally, resembles the market dynamics of December 2020.

If you're worried that this is the end of the bull market, know this:

In December 2020, $BTC dumped 12%, after witnessing a 77% rally in October-November.

It then went from $17,000 to $41,000 (a 136% move) in the next 23 days.

Something similar is happening right now, with… pic.twitter.com/lFPSy3JjTt

— Lark Davis (@TheCryptoLark) December 20, 2024

At that time, Bitcoin saw a 12% decline after a 77% surge in October and November, only to skyrocket from $17,000 to $41,000—a 136% gain—in just 23 days. While Davis cautions that another 10-15% correction is possible, he emphasizes that Bitcoin and the broader crypto market still have significant momentum, suggesting the crypto bull run is far from over.

In his newest podcast, Davis dispelled the idea that Bitcoin was going to top out at $100,000 and even threw out the idea that the current cycle is coming near its end.

Using numerous different technical indicators and historical patterns, Davis suggested that Bitcoin has a lot more momentum, which could bring up new all-time highs way past the psychological resistance level of $100,000.

RSI Suggests Room for Growth

Davis initiated his analysis by looking at Bitcoin’s monthly RSI. Historically, the top of Bitcoin’s cycle coincides with the RSI reaching or exceeding 90. For the 2017 and 2021 cycles, these peaks also coincided with euphoric market conditions and overall crypto bull run.

Currently, Bitcoin’s RSI stands at around 75-76, much lower than historical peak values. He said this alone could indicate that the market still has plenty of fuel in the tank. Comparing the current phase to earlier cycles, Davis noted that initial peaks were followed by higher price rallies, and Bitcoin could be set to do the same in the coming months.

The Net Unrealized Profit/Loss chart is supporting Davis’s bullish outlook. This metric categorizes market sentiment into zones like belief, euphoria, and greed. Presently, Bitcoin is in the “belief” zone, far from the “euphoria” zone associated with market tops.

In the same way, the MVRV Z-score is another reliable on-chain indicator that measures Bitcoin’s value as significantly undervalued compared to previous peaks. Davis forecasted crypto bull run, meaning this will rise to the levels from previous cycle highs and affirm that the market hasn’t peaked yet.

Fibonacci Levels and Psychological Resistance

Davis pointed out the 1.618 Fibonacci retracement level, which is a very important mark for the price action of Bitcoin. The recent resistance at the $100,000 level was right on this technical target, compounded by its psychological significance.

Even though there is no crypto bull run happening right now, Davis waved this off as just the first stop in Bitcoin’s upward journey. He explained that whales make it a point to put sell orders at round numbers like $100,000, and this creates temporary resistance, while the big trend remains upward.

The investor applied historical cycles and suggested that Bitcoin could peak in March or April 2024, possibly reaching $250,000 or even higher. He was basing his prediction on chart patterns, including the narrowing gap in the Pi Cycle Top Indicator.

With the highly unpredictable nature of markets, Davis warns traders to stay cautious while still optimistic, since the cycle is likely to extend into the latter half of 2024. At the time of writing, the price of Bitcoin was $96,924, down by 1.77%.