A quant has identified parallels between the present and the 2017 Bitcoin cycles, one thing that will comprise hints about what’s subsequent for the asset.
The Present Bitcoin Cycle Has Proven Attention-grabbing Parallels With The 2017 Cycle
As defined by an analyst in a CryptoQuant publish, there have been 5 fascinating latest occasions within the present cycle which can be just like what was seen within the 2017 cycle.
The 2017 cycle hit its prime in December of that yr, whereas the present cycle hit its prime again in November of 2021. The whole thing of those cycles isn’t related within the context of the present dialogue; solely the bearish traits that adopted after their respective highs had been attained.
Associated Studying: Bitcoin Circulation Price Stays Low, Why This Might Be Unhealthy For Rally
The under chart reveals the development within the proportion drawdowns that had been seen following the tops within the 2017 and 2021 Bitcoin cycles:
The bear markets of the 2017 and 2021 cycles in contrast | Supply: CryptoQuant
As you’ll be able to see within the graph, the quant has marked among the related parts of the cycles that had been comparable between them. In each of those cycles, the value first noticed a bear market section the place the asset endlessly consolidated. Within the case of the 2017 cycle, the sideways motion was across the $6,000 stage, whereas for 2021, it was in regards to the $20,000 mark.
Each these consolidation intervals ended with the value seeing a pointy plunge. Assuming that the lows after the FTX crash again in November 2022 had been the worst this bear market goes to get, then the same sharp plunges in these cycles additionally result in bear bottoms for each of them.
After these lows, the value once more took to sideways motion in each the 2017 and 2021 cycles. Within the 2017 cycle, the value adopted up this era with sharp bullish momentum within the type of the April 2019 rally. The present cycle additionally appears to be exhibiting one thing comparable within the type of the rally that began earlier this yr.
Bitcoin hit a roadblock halfway by way of the April 2019 rally and slumped right into a sideways consolidation section once more. The quant believes that that is the section the present cycle is in proper now, as BTC’s value motion has been fairly stale just lately.
The X-axis of the graph reveals the variety of days because the prime that these occasions passed off in these cycles. It’s fascinating how shut the cycles have seemingly been in not simply the construction, but additionally the timing of the occasions.
If the parallels between these two Bitcoin cycles will proceed to carry sooner or later, then the present sideways development could also be adopted by a pointy rise within the value, because the April 2019 rally additionally adopted up its sideways section with a robust uptrend.
BTC Value
On the time of writing, Bitcoin is buying and selling round $28,300, up 1% within the final week.
BTC has continued to maneuver sideways in latest days | Supply: BTCUSD on TradingView
Featured picture from André François McKenzie on Unsplash.com, charts from TradingView.com, CryptoQuant.com
