Bitcoin (BTC) price started the week by successfully soaring above the $22,000 psychological level, making a high of $22,795. The recent rally makes speculation that Bitcoin (BTC) might have bottomed out. However, Grayscale’s latest report on crypto market cycles reveals the bear market could last another 250 days.
Grayscale’s Latest Report Nullify Bitcoin Bottom Speculations
Digital asset manager Grayscale in its latest report “Bear Markets in Perspective” reveals that just like traditional financial markets, the crypto market also has cycles that last nearly 4 years or 1,275 days.
Grayscale has defined a market cycle by implying when the Realized Price moves below the Market Price. However, the report asserts there are various methods to identify a market cycle.
The present cycle started in 2020, with 1191 days completed. In about four months the Realized Price
crosses back above the Market Price. Based on this, the downward or sideways price movement could continue for another 5-6 months.
Interestingly, the on-chain data reveals an increase in exchange outflows and small Bitcoin holders in mid-2022. This could mean investors are taking the opportunity to increase their position sizes at a discount.
