 ▲ Bitcoin (BTC) and cash |
As the 40-month manufacturing downturn comes to an end and the economy enters an expansion phase, expectations for a bullish run in the virtual asset market are reaching their peak.
Cryptocurrency analyst Dan Gambardello said in a video posted on his YouTube channel on March 2 (local time) that the Manufacturing Purchasing Managers Index (PMI) recorded 52.4%, returning to expansion territory for the first time in 40 months. Gambardello diagnosed that the contraction period that had continued since 2021 has concluded and that a full-scale business cycle expansion has begun. The fact that the index, which exceeded the 50 mark only three times over the past 40 months, has remained in expansion territory for two consecutive months signals a structural shift in the virtual asset market.
Bitcoin (BTC) is currently undergoing a technical correction on its monthly chart but is eyeing a strong rebound in line with expansion indicators. Gambardello emphasized that although Bitcoin is testing support near its 50-month moving average, historical patterns show that bull markets have emerged during every economic expansion phase. “The monthly chart may look temporarily weak, but Bitcoin has always delivered powerful rallies during economic expansions,” he explained.
Cardano (ADA) has entered an oversold zone in line with the economic cycle and is preparing for strong recovery momentum. Gambardello assessed that Cardano’s Relative Strength Index (RSI) and momentum indicators remain at bottom levels, increasing the likelihood of a price surge during an economic rebound. He also projected that new assets such as Midnight, with a market capitalization below $1 billion, could demonstrate explosive growth potential during the expansion phase.
Sui (SUI) is also showing a high correlation with manufacturing indicators and is signaling an oversold condition on its two-day chart. Gambardello forecast that Sui will test its moving averages at approximately $1.30 and $1.37 in the short term before initiating a full-fledged price recovery. With expansion indicators now trending upward, major altcoins appear ready to follow Bitcoin in joining a strong upward movement.
Entering an economic expansion phase typically leads to increased liquidity and improved investor sentiment across the virtual asset market. Gambardello advised investors to focus on changes in macroeconomic indicators rather than being overwhelmed by market fear, and to manage risk from a long-term perspective. Improved manufacturing data could serve as a decisive catalyst for a crypto bull market.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*