Bitcoin Shows Parallels With 2017 Cycle, Here’s What Can Happen Next
10 Abril 2023 - 1:00PM
NEWSBTC
A quant has pointed out parallels between the current and the 2017
Bitcoin cycles, something that may contain hints about what’s next
for the asset. The Current Bitcoin Cycle Has Shown Interesting
Parallels With The 2017 Cycle As explained by an analyst in a
CryptoQuant post, there have been five interesting recent events in
the current cycle that are similar to what was seen in the 2017
cycle. The 2017 cycle hit its top in December of that year, while
the current cycle hit its top back in November of 2021. The
entirety of these cycles isn’t relevant in the context of the
current discussion; only the bearish trends that followed after
their respective highs were attained. Related Reading: Bitcoin
Circulation Rate Remains Low, Why This Could Be Bad For Rally The
below chart shows the trend in the percentage drawdowns that were
seen following the tops in the 2017 and 2021 Bitcoin cycles: The
bear markets of the 2017 and 2021 cycles compared | Source:
CryptoQuant As you can see in the graph, the quant has marked some
of the relevant portions of the cycles that were similar between
them. In both of these cycles, the price first observed a bear
market phase where the asset endlessly consolidated. In the case of
the 2017 cycle, the sideways movement was around the $6,000 level,
while for 2021, it was about the $20,000 mark. Both these
consolidation periods ended with the price seeing a sharp plunge.
Assuming that the lows after the FTX crash back in November 2022
were the worst this bear market is going to get, then the similar
sharp plunges in these cycles also lead to bear bottoms for both of
them. After these lows, the price again took to sideways movement
in both the 2017 and 2021 cycles. In the 2017 cycle, the price
followed up this period with sharp bullish momentum in the form of
the April 2019 rally. The current cycle also seems to be showing
something similar in the form of the rally that started earlier
this year. Bitcoin hit a roadblock midway through the April 2019
rally and slumped into a sideways consolidation phase again. The
quant believes that this is the phase the current cycle is in right
now, as BTC’s price action has been quite stale recently. The
X-axis of the graph shows the number of days since the top that
these events took place in these cycles. It’s interesting how close
the cycles have seemingly been in not just the structure, but also
the timing of the events. Related Reading: Bitcoin Mining
Difficulty Hits All-Time High For The 4th Time In 2023: Here’s Why
If the parallels between these two Bitcoin cycles will continue to
hold in the future, then the current sideways trend may be followed
by a sharp rise in the price, as the April 2019 rally also followed
up its sideways phase with a strong uptrend. BTC Price At the time
of writing, Bitcoin is trading around $28,300, up 1% in the last
week. BTC has continued to move sideways in recent days | Source:
BTCUSD on TradingView Featured image from André François McKenzie
on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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