Bitcoin price is still trading at more than $25,000 less than the local highs set earlier in the year, and bulls have a lot of ground to reclaim.
However, the lost ground might not be so bad after all, as it has brought the current market cycle a lot closer to past bull cycle comparisons, which could shed some light on what’s left for Bitcoin in terms of price action in the months ahead.
Bitcoin Collapse Puts Market Cycle On Par With Previous Bull Run
Following a sharp more than 55% decline across the board in cryptocurrencies – even the top dog Bitcoin – the market is mixed on whether or not the bull run has ended and if a new bear market has begun.
The standard definition of a bear market in “securities” is a 20% or more decline. By those standards Bitcoin is in a bear market every other week and has been in one since April 2021.
Related Reading | The Fibonacci Sequence And Why $30K Bitcoin Is So Important
The massive plunge was among the worst monthly declines on record and the most devastating Q2 in crypto history – and it might have been enough of a drop to prevent a full fledged crypto bear market.
It also has brought prices back down to a level that’s a lot more on par with past bull market cycles.
The recent crash put this cycle on par with the last | Source: BLX on TradingView.com
Will The Parabolic Curve In Crypto Behave The Same Way Again?
The chart above takes an exact carbon copy of the 2016 and 2017 bull market, and juxtaposes it over the current market cycle. A similar parabolic curve is drawn to show the possible trajectory.
From 2015 through 2018, Bitcoin price grinded against the support curve the entire way up. There was very little divergence from the rounding, upward trending line.
Related Reading | Why The Next Bitcoin Bear Market Will Be The Worst Yet
There’s no denying this recent market cycle is very different than the last, but the recent 55% collapse has made things a lot more similar in scope.
Much like in early 2019 Bitcoin price deviated away from the curve, then overcorrected back down to it, the leading cryptocurrency by market cap could have done the very same thing from April through the recent bottom put in around the start of this month.
There’s still some room between today and the next bump into the parabolic curve. This could suggest there’s more sideways ahead, but further downside is likely limited thanks to what has already been a large enough correction.
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
Bitcoin worth remains to be buying and selling at greater than $25,000 lower than the native highs set earlier within the yr, and bulls have loads of floor to reclaim.
Nevertheless, the misplaced floor won’t be so dangerous in any case, because it has introduced the present market cycle lots nearer to previous bull cycle comparisons, which might shed some gentle on what’s left for Bitcoin when it comes to worth motion within the months forward.
Bitcoin Collapse Places Market Cycle On Par With Earlier Bull Run
Following a pointy greater than 55% decline throughout the board in cryptocurrencies – even the highest canine Bitcoin – the market is combined on whether or not or not the bull run has ended and if a brand new bear market has begun.
The usual definition of a bear market in “securities” is a 20% or extra decline. By these requirements Bitcoin is in a bear market each different week and has been in a single since April 2021.
Associated Studying | The Fibonacci Sequence And Why $30K Bitcoin Is So Vital
The huge plunge was among the many worst month-to-month declines on file and essentially the most devastating Q2 in crypto historical past – and it might need been sufficient of a drop to stop a full fledged crypto bear market.
It additionally has introduced costs again right down to a degree that’s much more on par with previous bull market cycles.
The current crash put this cycle on par with the final | Supply: BLX on TradingView.com
Will The Parabolic Curve In Crypto Behave The Identical Method Once more?
The chart above takes an actual carbon copy of the 2016 and 2017 bull market, and juxtaposes it over the present market cycle. The same parabolic curve is drawn to point out the potential trajectory.
From 2015 by means of 2018, Bitcoin worth grinded towards the assist curve the complete method up. There was little or no divergence from the rounding, upward trending line.
Associated Studying | Why The Subsequent Bitcoin Bear Market Will Be The Worst But
There’s no denying this current market cycle could be very completely different than the final, however the current 55% collapse has made issues much more related in scope.
Very like in early 2019 Bitcoin worth deviated away from the curve, then overcorrected again right down to it, the main cryptocurrency by market cap might have finished the exact same factor from April by means of the current backside put in across the begin of this month.
There’s nonetheless some room between in the present day and the subsequent stumble upon the parabolic curve. This might recommend there’s extra sideways forward, however additional draw back is probably going restricted because of what has already been a big sufficient correction.
Observe @TonySpilotroBTC on Twitter or by way of the TonyTradesBTC Telegram. Content material is academic and shouldn’t be thought-about funding recommendation.
Featured picture from iStockPhoto, Charts from TradingView.com