Following the market's crash last week, Bitcoin has officially entered a bear market. The digital asset has lost more than 70% of its value since its all-time high, and many buyers have started to flee from it.
Despite the current situation, bear markets have already occurred in the past. These are not the first instances of this kind of market volatility.
It's also important to note that the various market cycles that have occurred in the past for Bitcoin have not been as bizarre as they seem. Despite the recent developments, the bear and bull markets that have occurred in the past still follow the same historical patterns.
Throughout the history of bitcoin, the alternation between bull and bear markets has been a part of the market's expertise. It's not expected to change anytime soon. This is because the various boom-bust cycles in the digital asset's history have lasted for 13 years.
Market cycle remains bullish
Although Bitcoin has already lost about 73% from its peak, it's not the primary time this type of situation has occurred. During the November 2013 market, it was revealed that the digital asset had already said no to the bull market. It didn't stop until it ended its 447-day losing streak. This marked the beginning of the stretched-out bull market.
Despite the various factors that have affected the market in the past, the 2017 bull-bear cycle is perceived to be more potent than the one in 2013. The drawdown, on the other hand, lasted only about a year. It ended with a poor efficiency of more than 80%.
It's expected that the current drawdown will continue. Since the digital asset has been maintaining its recent bullish development, the next leg of the decline may be shorter than the one that started in 2013. Based on the previous two examples, it's believed that Bitcoin will eventually break out of its bottom. This suggests that the market will likely see Bitcoin at around $11,000 in late 2022.
Good morning!— il Capo Of Crypto (@CryptoCapo_) June 23, 2022
Charts remain bearish and we will probably see new lows these days. Those lows will give good buy opportunities.
Peter Schiff, a prominent Bitcoin opponent, is reportedly in a joyful mood these days due to the recent developments in the market. He had warned about the potential of a large Bitcoin value crash. Schiff had also predicted that the digital asset would eventually reach $10,000. In a recent statement, the founder of SchiffGold.com, said that Bitcoin is still in its downward spiral.
The economist said that the Grayscale Bitcoin Belief was an unusual trading strategy. It involved buying and selling Bitcoin at a low cost to the NAV. However, Schiff noted that this strategy could also signal that a bigger vendor of Bitcoin is in the works.
Schiff noted that Bitcoin's costs have been severely affected by the damage caused by the support and resistance ranges at around $20,200 and $10,000, which could trigger additional selling pressure. He also predicted that the digital asset's value would drop to the lowest support line, around $10,000.
According to the founder of SchiffGold.com, Bitcoin's current lows are why the 2017 peak has already been erased. Since there isn't a robust support level between $10,000 and $18,000, the costs are likely to fall quickly to $6,000.