Bitcoin price is still trading above $25,000, well below its local highs set earlier in the year, and the bulls have a lot of ground to reclaim.
However, the lost ground may not be all that bad after all, as it has drawn the current market cycle much closer to the previous bull cycle, with a view on what is left for bitcoin in terms of price action in the coming months. can shed some light.
After a sharp drop of over 55% across the board in the cryptocurrency – even top dog bitcoin – the market is mixed on whether the bull run has ended and if there are any new ones. Bear
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear The market has started.
The standard definition of a bear market is a 20% or greater decline in “securities”. By those standards bitcoin is in a Bear
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear The market is every other week and one from April 2021.
Related Reading | The Fibonacci Sequence and Why $30K Bitcoin Is So Important
The massive drop was the worst monthly drop on record and one of the most disastrous Q2 in crypto history – and it could be enough of a drop to prevent an outright crypto bear market.
This has brought the price back to a level that is on par with previous bull cycles.
The recent crash put this cycle on par with the last | Source: BLX on TradingView.com
The chart above takes an exact carbon copy of the 2016 and 2017 bull markets, and links it to the current market cycle. A similar parabolic curve is drawn to show the possible trajectory.
From 2015 to 2018, the price of bitcoin completely grinded against the support curve. Rounding, there was little deviation from the upward trend line.
Related Reading | Why the next bitcoin bear market will be the worst yet
There is no denying that this recent market cycle is very different from the last, but the recent 55% collapse has made things even more similar.
Much as the price of bitcoin veered off the curve in early 2019, then turned it back down, the leading cryptocurrency by market capitalization could very well have worked through its recent lows from April earlier this month. .
There is still some space between today and the next bump in the parabolic curve. This may suggest there is more sideways ahead, but the potential for further downside is limited thanks to what is already a big enough improvement.
obey @TonySpilotroBTC on Twitter or through TonyTradesBTC Telegram. The content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
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