The price of bitcoin is still more than $25,000 behind the local highs established earlier this year, and bulls still have a lot of ground to make up.
However, the lost territory may not be so awful after all, as it has pushed the current market cycle much closer to previous bull cycle comparisons, which may give some light on what Bitcoin’s price movement may look like in the months ahead.
The Market Cycle Is Now On Par With the Previous Bull Run, Thanks to Bitcoin’s Collapse.
Following a dramatic 55 percent drop across the board in cryptocurrencies, including the top dog Bitcoin, the market is split on whether the bull market has come to an end or if a new bear market has begun.
A typical definition of a bear market in “securities” is a drop of 20% or more. By such measures, Bitcoin has been in a bear market every other week since April 2021.
The huge loss was one of the biggest monthly drops on record, as well as the most catastrophic Q2 in crypto history — and it may have been enough to stave off 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.
Will Crypto’s Parabolic Curve React In The Same Way?
Bitcoin’s price rose against the support curve the entire way up from 2015 to 2018. There was very little deviation from the upward-trending, rounded line.
There’s no doubting that this market cycle is unlike any other, but the latest 55 percent drop has brought everything closer together in terms of scale.
Similar to how Bitcoin price strayed from the curve in early 2019 before overcorrecting back to it, the top cryptocurrency by market size might have done the same thing from April to the current bottom put in around the beginning of this month.
