Data shows the current Bitcoin cycle is lining up against the historical ones in terms of the returns that the asset has seen since hitting its bottom. Previous Bitcoin Cycles Had Similar Returns At This Stage As pointed out by CryptoQuant Netherlands community manager Maartunn i...
Data shows the current Bitcoin cycle is lining up against the historical ones in terms of the returns that the asset has seen since hitting its bottom.
Previous Bitcoin Cycles Had Similar Returns At This Stage
Below is the chart shared by the analyst, which compares the price performance of each Bitcoin cycle, starting with the bottoms of the respective bear phases.
From the graph, it’s visible that all three cycles observed relatively close price action for the first 100 or so days after the formation of the respective cyclical lows.
After this point, the cycles showed some divergence. The last cycle, in particular, displayed price action that was significantly detached from that of the current cycle or the cycle before that one.
The last two cycles started to converge 300 days after the bottom and successfully did so by the 350th mark. Recently, the current cycle has reached the same milestone, and interestingly, it has converged with the others.
As is apparent from the chart, following this point of convergence, the cryptocurrency moved sideways in both of the previous two cycles. If this is anything to go by, BTC may also be going through a similar phase of consolidation soon in the current cycle as well.
At present, the Bitcoin long-term holders are carrying 2.6 million BTC in loss. As Straten has highlighted in the chart, this level is in line with what the indicator’s value was when the cryptocurrency was exiting the bear market in previous cycles.
BTC Price
At the time of writing, Bitcoin is trading at around $34,800, up 1% in the past week.