When are the bulls coming? Weiss Crypto Ratings shares a detailed study that points out key elements and the how’s and why’s of the next Bitcoin bull market still in the making.
Each new bull cycle peak dramatically higher than the previous one
Everyone is anticipating and eagerly awaiting for the next bull run. Now, the Weiss cryptocurrency rating agency has released a detailed study of the market as to the coming up tides.
Starting with the Wall Street’s so-called experts, pointing out their predictable behavior, when a market soars, they pour in with their “powerful fundamental forces” cheers and then go on predicting the demise as the “bubble inevitable bursts”.
Talking about the cyclic pattern of the market,
“Bitcoin enjoys a massive bull market, culminating in a frenzied parabolic surge of speculation — the period we call “the climax.” It comes crashing down as speculators beat a panicky retreat. It consolidates for months, creating a dead zone of sideways action or further decline, from which only the diehard survive. And it launches a new bull market, repeating the cycle — again culminating in a blast-off climax.”
Taking us through the patterns followed by Bitcoin over the years, the key of the situation is in 2010, about eight years ago when Bitcoin was trading around 6 cents which is now at about $7,000.
Bull cycle #1, September 2010 to June 2011
From here, Bitcoin’s cycle of rising begins. Bitcoin lifts from 6 cents to 80 cents, though the market is still illiquid and minuscule. Then prices reach $36 followed by an immediate crash of 93%.
“But it never trades below $2. So… Even at the ultimate bottom of the crash, investors who bought at the beginning of the bull market cycle sit on gains of 38 times their original investment.”
Bull cycle #2, October 2011 to April 2013
Just like before, Bitcoin rises five-fold but the frenzy comes in January when the prices went to $260, a 13,000% rise. And again an instant 80% crash to $50. This gives way to headlines of “bitcoin is dead”.
“But as in the prior bull run… Even at rock bottom, anyone who bought near the beginning of this cycle is sitting on an asset worth five times their original investment.”
Bull cycle #3, April 2013 to December 2013
Initially, at a low of $50 in April, the price climbs $100 by October 2013. Then the last two months saw the action as the price explodes to $1,160 in December, a surge of 1,160%. And then again, Bitcoin plunges 87% to $150 by January 2015. Then the bear market is so long and so deep that experts get extremely worried about the future of crypto.
“Even at the bottom, investors who bought at the beginning of the cycle still have tripled their original investment.”
Bull cycle #4, January 2015 to December 2017
Bitcoin took a couple of years to recover, only to skyrocket. From about $1,000 in January 2017 to $5,000 in October and then nearly $20,000 by December. Then, of course, the inevitable crash of 70% at $5,800 in February.
“Many analysts, not personally familiar with the prior bull cycles, argue as if this is somehow “a new phenomenon.” But as you’ve clearly seen, it’s anything but. It’s déjà vu.”
Next Bitcoin bull cycle in the making
Considering the Bitcoin history, the next bull cycle would be choppy and slow and core will be solid instead of parabolic. “It’s not until the final blow-off phase that you will see Bitcoin make new all-time highs and rise parabolically.” That too only to lead a crash that will “wipe out at least half of the gains.”
However, each bull cycle is making progress and evolving into a more mature phase as
- Bitcoin is no longer alone as each cycle sees new cryptocurrencies
- The trading volume and liquidity of the market is constantly improving as the climactic phase, last two months of the bull cycle are becoming less extreme.
- Infrastructure and the adoption are also steadily growing as before 2010, “all trading was over the counter” leading to one exchange in 2013. Now over 200 crypto exchanges are in the market.
The report concludes with:
“From a fundamental standpoint, engagement in cryptocurrencies has never been greater. The infrastructure and underlying technology are in the best state that they’ve ever been. In the long term, there’s only one way to go from here: onward and upward.”
So, get ready as sooner or a bit later, bulls are coming and at top speed!