The bitcoin price has already reached the minimum levels of this cycle, says a report by Pantera Capital.
The bitcoin price would be in the seventh bullish cycle in its history, says the hedge fund Pantera Capital, which specializes in cryptocurrencies. "Digital assets have already registered their minimum values ??and we are in the next bullish cycle," said the firm's founder and CEO, Dan Morehead, in a letter to the fund's clients.
Morehead said that Pantera has been investing in bitcoin for the past 10 years, in which there have been six up cycles and six down cycles, prior to the current cycle. “The fund has invested in 12 of the 13 bitcoin cycles that have been recorded,” Morehead states in the
The following tables show the aforementioned cycles. In the case of the bullish cycles, there are two of them in which the price multiplied by factors greater than 100, although the rest of the increases show growth factors between 2x and 4x.
Details of the bullish and bearish cycles of bitcoin. Source: Pantera Capital.
Pantera speaks of an average increase of 40x, although it weighs it, taking into account that the large increases up to 2015 corresponded to relatively low prices. The weighted average of bitcoin's annual increases is approximately 4 times.
As for the declines in the price of bitcoin, the most pronounced was registered between December 2017 and December 2018, which was 84%. The last bitcoin bear cycle occurred between the price's all-time high of $68,790 to the November 2021 low of $15,599. The price retracement was 77%, the third highest on record for the bitcoin price.
Bitcoin Bullish Despite Correction
In the chart below, Pantera shows a chart with gold bars marking bullish cycles and black spaces for bearish cycles. It is appreciated that the duration of the bullish cycles tends to be shorter in the most recent cycles.
The last bullish cycle, in 2021, is the shortest and the one that shows the lowest price increase. It lasted 113 days and in that cycle there was a doubling of the price. In the current cycle, the percentage increase is 55%, taking into account the maximum reached so far of UD 24,167, registered on February 2.
The dotted line on the chart marks the long-term trend of bitcoin. On average, the report maintains, the price of bitcoin has grown 2.3 times per year.
Despite the downward trend since November 2021, bitcoin shows 31% appreciation compared to the beginning of the year. Meanwhile, some metrics associated with the rate of profit in the purchase and sale of BTC would be signaling a key movement in the price of bitcoin.
