Markets are cyclical and history often repeats.
And if there was any indication of the bear-to-bull cycle from 2014 to 2017, Bitcoin could have had another full year before the cryptocurrency revisited its all-time high.
Comparison of Previous Cycles with Current Bear and Bull Markets
The crypto market is convinced that a new bull market has emerged for altcoins such as Bitcoin and Ethereum, Litecoin and XRP.
Numerous signals tend to support the theory, and the whole market is resting and gathering just below critical resistance – a sign that the resistance level may soon break.
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However, a push beyond the current levels will definitely suggest a new bull market is here, while a refusal at the current levels will align Bitcoin with the bull cycles past month.
Bitcoin is only 11 years old, so there are not many bear markets entering bull markets to gather information.
The most important bear market was following the 2013 summit, when Bitcoin first rose above $ 1,000.
There was a break above this level that caused Bitcoin to become parabolic in the rest of 2017 – a rally that led to the Bitcoin setting is the all-time high.
Realizing that the mysterious asset rose from the tomb and violated its previous height, investors caused a strong wave of FOMO that pushed prices to new records.
The same thing is expected once again when the mainstream public catches the wind that Bitcoin gained more than $ 20,000 after disappearing from the public eye during a downtrend over several years.
However, this may be a way out compared to the previous cycle.
Could Bitcoin Be All-Time High A Year Ago?
The time elapsed between the all-time high and the revision of the last cycle is about 1,135 days.
This time around, Bitcoin is only about 800 days from current bear to bull cycle, which indicates a year-long price action for leading cryptocurrency by market value before revisiting $ 20,000.
The data also shows that the current rally of Bitcoin is overheating compared to the same point in the last cycle.
Bitcoin, which has only 800 days, is now 230% up from the bottom and reaches $ 3,100. Recently in 800 days, Bitcoin has risen only 150% from below.
Also, in the current period, only 100% of earnings remained before Bitcoin reached $ 20,000. At the same point during the last cycle, Bitcoin was slightly below 200%.
Also, when drawing on logarithmic growth curveBitcoin spent 850 days on the blue sub channel before it broke out and went to the rally. During the current cycle, the first cryptocurrency spent a total of 310 days in the blue band during two separate declines.
Bitcoin is currently at the top of the bottom blue band, which is a logical place for a correction to happen and potentially pushes the crypto asset back into the accumulation band for a while.
And more importantly, this cycle in the absolute bottom of the growth cycle has not been touched yet.
Achieving these levels faster, Bitcoin shows that either Bitcoin is going higher this time, and it can set a new all-time high much earlier than the previous cycle.
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However, many analysts believe that each Bitcoin cycle is prolonged due to the reduced relative volatility of the asset during adoption. This suggests that Bitcoin doesn't have just one year, but it can take longer than the crypto king set the all-time high.
But once, like the last time, it will be closed to races, and Bitcoin will once again become parabolic and set a new record that shocks the world.