Let’s see how it looks compared to the last two bullfights.
Photo by André François McKenzie on Unsplash
First, we must agree that there is a cycle in every economy. We can say that it consists of the bullish phase where the price of an asset is rising and the bearish period where the price is falling.
That is a ruler. What goes up must come down and vice versa.
The same applies to cryptocurrencies and Bitcoin.
In the cryptocurrency market, this cycle has a period of 4 years. The event that triggers the transition from bearish to bullish phase is the Bitcoin halving event.
The Bitcoin halving event occurs after 210,000 blocks are generated, and that takes about 4 years.
In 2016, on July 9, the halving event occurred and the price of bitcoin was $ 646. Exactly one year later, the price was $ 2,555. That is 3.8 times the price of the reduction. to the half.
Then a correction occurs, and on December 17, a new ATH occurs. We saw the peak of the cycle with the price of BTC at $ 19,266.
That’s a total of 29 times the price of the halving event.
In 2020, on May 11, the last halving event occurs, and the price of BTC is worth $ 8476. After a year, the price rose to approx. $ 48,000. That’s a multiplier of 5.6.
Let’s look at some other interesting facts. At first, Bitcoin was an unknown asset. Few people knew and fewer were involved.
He asked people if they knew. The result was that two in ten people knew about it, but only one in a hundred has invested.
Now everyone knows BTC and a lot of people have invested.
Before the latest halving event, Banks CEO was negative and said that BTC was a scam.
Now they say otherwise and are trying to get a license so that their customers can trade with it.
Again we see that it becomes more and more accessible and current.
The bearish period begins when we hit an ATH, and after that, we have a rapid drop in price of more than 40%.
We have seen it in 2017-18 in a really tough fall.
We have seen it and in this bull run on May 23, where the price was for a moment 50% below the ATH.
On the other hand, the confinements so far have a period of 460–518 days depending on how we start to measure, but now we only have 370 days from the beginning of this confinement.
Also, we are a long way from a x29 multiplier in the price of BTC in this bull run.
It seems that the market is divided in half. One party believes that we are in a bearish phase and that this cycle has ended due to the large correction. The other half believe that we have not seen big gains in this bull run and that we are in a healthy correction.
You want my opinion
I do not know. I see the picture of the market and I interpret it in one way or another, depending on the angle in which I see it. I am divided in half.