Bitcoin price Its transaction price is still more than US$25,000 lower than the local high set earlier this year, and the bulls have a lot to recover.
However, losing ground may not be that bad after all, because it brings the current market cycle closer to the comparison of past bull market cycles, which may reveal what is left of Bitcoin in terms of price movements in the coming months.
Bitcoin crash puts the market cycle in line with the previous bull market cycle
With a sharp A drop of more than 55% In cryptocurrencies – even the number one bitcoin – the market has mixed feelings about whether the bull market is over and whether new conditions emerge Bear The market has already begun.
standard Definition of bear market In terms of “securities”, it has fallen by 20% or more.According to these standards, Bitcoin is in Bear It is listed every other week and has been in a market since April 2021.
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The massive plunge is one of the worst monthly losses on record and the most disruptive second quarter in cryptocurrency history-it may be enough to prevent a fall A mature crypto bear market.
It also brought prices back to levels comparable to 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 encryption behave in the same way again?
The picture above is an exact copy of the bull market in 2016 and 2017. And juxtapose it with the current market cycle. Draw a similar parabola to show possible trajectories.
From 2015 to 2018, the Bitcoin price went against the support curve during the entire rise. There is almost no deviation from the rounded up trend line.
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It is undeniable that the recent market cycle is very different from the last one, but the recent 55% crash has made the scope of things more similar.
Just as the Bitcoin price deviated from the curve at the beginning of 2019 and then over-corrected the curve, the leading cryptocurrency by market capitalization may do the same from the recent bottoming around April to the beginning of this month.
There is still some space between today and the next collision of the parabolic curve. This may indicate that there will be more sideways consolidation in the future, but since sufficient corrections have been made, further downside space may be limited.
Featured image from iStockPhoto, Charts from TradingView.com