More

    How The 55% Bitcoin Correction Revives Comparisons To Past Bull Cycle

    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

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 47,403.00
    ethereum
    Ethereum (ETH) $ 3,423.92
    cardano
    Cardano (ADA) $ 2.36
    tether
    Tether (USDT) $ 1.00
    binance-coin
    Binance Coin (BNB) $ 411.76
    xrp
    XRP (XRP) $ 1.07
    solana
    Solana (SOL) $ 140.85
    polkadot
    Polkadot (DOT) $ 33.81
    dogecoin
    Dogecoin (DOGE) $ 0.241604
    usd-coin
    USD Coin (USDC) $ 1.00
    avalanche-2
    Avalanche (AVAX) $ 64.75
    terra-luna
    Terra (LUNA) $ 34.98
    chainlink
    Chainlink (LINK) $ 28.30
    uniswap
    Uniswap (UNI) $ 24.68
    binance-usd
    Binance USD (BUSD) $ 1.00
    litecoin
    Litecoin (LTC) $ 180.80
    bitcoin-cash
    Bitcoin Cash (BCH) $ 625.18
    algorand
    Algorand (ALGO) $ 1.94
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 47,404.00
    cosmos
    Cosmos (ATOM) $ 33.70
    internet-computer
    Internet Computer (ICP) $ 56.09
    matic-network
    Polygon (MATIC) $ 1.36
    filecoin
    Filecoin (FIL) $ 83.92
    stellar
    Stellar (XLM) $ 0.321004
    ftx-token
    FTX Token (FTT) $ 62.90
    tron
    TRON (TRX) $ 0.105843
    vechain
    VeChain (VET) $ 0.113265
    ethereum-classic
    Ethereum Classic (ETC) $ 56.90
    theta-token
    Theta Network (THETA) $ 6.34
    dai
    Dai (DAI) $ 0.999909
    compound-ether
    cETH (CETH) $ 68.58
    tezos
    Tezos (XTZ) $ 6.26
    eos
    EOS (EOS) $ 5.35
    okb
    OKB (OKB) $ 18.63
    elrond-erd-2
    Elrond (EGLD) $ 247.01
    pancakeswap-token
    PancakeSwap (CAKE) $ 21.69
    aave
    Aave (AAVE) $ 364.43
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.190087
    monero
    Monero (XMR) $ 262.06
    quant-network
    Quant (QNT) $ 353.04
    iota
    IOTA (MIOTA) $ 1.68
    cdai
    cDAI (CDAI) $ 0.021633
    bitcoin-cash-abc-2
    Bitcoin Cash ABC (BCHA) $ 239.54
    compound-usd-coin
    cUSDC (CUSDC) $ 0.022189
    ecash
    eCash (XEC) $ 0.000235
    staked-ether
    Lido Staked Ether (STETH) $ 3,406.65
    hedera-hashgraph
    Hedera Hashgraph (HBAR) $ 0.433021
    shiba-inu
    Shiba Inu (SHIB) $ 0.000008
    the-graph
    The Graph (GRT) $ 0.819351
    near
    Near (NEAR) $ 8.33