Bitcoin Could See Another 5-6 Months of Downward or Lateral Price Movement – Markets and Prices Bitcoin News

Bitcoin Could See Another 5-6 Months of Downward or Lateral Price Movement – Markets and Prices Bitcoin News

Grayscale Investments explained that there could be another 250 days of the current crypto bear market, citing patterns in previous cycles. Additionally, “Bitcoin is 222 days off from an all-time high, which means we could see another 5-6 months of bearish or sideways price movement,” the world’s largest digital asset manager detailed.

Grayscale’s crypto market layout

Grayscale Investments, the world’s largest digital asset manager, announced a report titled “The Bear Market in Perspective” this week.

The firm explained: “The length, time to peak and trough, and recovery time to previous all-time highs in each market cycle may indicate that the current market may resemble previous cycles, which has led the crypto industry to continue to innovation and push. new highs.”

Report with details:

Crypto market cycles average ~4 years or roughly 1,275 days.

While most bitcoiners are familiar with market cycles based on the bitcoin halving cycle, Grayscale has defined an overall crypto market cycle that also roughly works out to a four-year period.

The digital asset manager explained: “While methods differ for identifying crypto market cycles, we can quantitatively define a cycle by when the realized price moves below the market price (the current trading price of the asset), using bitcoin prices as a proxy.”

Bitcoin Could See Another 5-6 Months of Downward or Lateral Price Movement – Markets and Prices Bitcoin News
Chart showing bitcoin market cycles. Source: Grayscale Investments

“As of June 13, 2022, Bitcoin’s realized price has crossed below the market price signaling that we may have officially entered a bear market,” Grayscale described.

The report goes on to explain that in the 2012 cycle, there were 303 days in the zone where the realized price was less than the market price of Bitcoin. In the 2016 cycle, there were 268 days in the zone.

Noting that we are only 21 days into this zone in the 2020 cycle, the digital asset manager noted:

We may see about 250 more days of high value buying opportunities compared to previous cycles.

In addition, the report notes that crypto market cycles take about 180 days longer to peak each time.

Bitcoin Could See Another 5-6 Months of Downward or Lateral Price Movement – Markets and Prices Bitcoin News
Crypto cycles. Source: Grayscale Investments

“From peak to trough, the 2012 and 2016 cycles lasted roughly 4 years, 1,290 and 1,257 days, respectively, and took 391 days to fall 73% in 2012 and 364 days to fall 84% in 2016 . year,” Grayscale said.

“In the current 2020 cycle, we have 1,198 days from July 12, 2022, which could represent approximately four months remaining in this cycle until the realized price goes above the market,” the firm continued, elaborating:

Bitcoin is 222 days from its all-time high, which means we could see another 5-6 months of bearish or sideways price movement.

What do you think about Grayscale’s explanation of where the crypto market is going? Let us know in the comments section below.

Bitcoin Could See Another 5-6 Months of Downward or Lateral Price Movement – Markets and Prices Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Leave a Reply