According to a CryptoQuant member, Bitcoin is presently a cakewalk investment for potential buyers.
Bitcoin (BTC) is expected to hit a “cycle bottom” this year, with a decline of nearly 50% from present levels, according to research.
On June 1, Venturefounder, a member at on-chain analytics platform CryptoQuant, predicted that BTC will “capitulate” in 2022 in a Twitter discussion.
Bitcoin currently boasts the “best three-year return on investment ever.”
This year will be the bearish black sheep of the current four-year cycle, according to historical performance regarding BTC halving cycles, Venturefounder writes.
BTC/USD could perhaps discover a macro floor in 2022, similar to 2018 and its bear market, and based on prior falls from all-time highs, this may be somewhere between $14,000 to $21,000.
“We are on time to BTC performance compared to previous cycles with 670 days until another Bitcoin halving,” one tweet explained:
“BTC will surrender in the next 6 months and hit cycle bottom ($14-21k), then bounce around in the $28-40k range for the rest of 2023, and be back at $40k by the next halving.”
Though such a prediction would not have been pleasing to bulls’ ears, it would not be unique.
BTC recovered from its December 2018 low of $3,100 to $13,800 seven months later prior to actually reverting downhill again to a bottom around $3,600 in March 2020.
Even 2019 local high was insufficient to surpass the previous high of $20,000 achieved in December 2017.
Such level, according to Venturefounder, could reappear on the spot price chart. Even now, those who are ready to hit the tide and invest will be on the right side of history.
“So look at it another way, purchasing Bitcoin now for the next 6-12 months is as good as it gets.” He further said, “Probably the best 3-year % ROI ever.”
“We aren’t at THE cycle bottom, but we are within the BTC cycle bottom range.” When it comes to market cycles, this is the best you can do.”
Bottom of Bitcoin Price Cycle
Bitcoin has dropped by 80 percent from high to low after every parabolic run-up, about a year later. BTC might reach $14k around October and November 2022, according to the same pattern.
One significant difference seen between the present crypto bubble and the previous dot-com bubble is that the internet’s speed will allow for a far faster crypto downturn and recovery.
As a result, we anticipate the cryptocurrency meltdown and bear market to terminate by the end of 2022.
According to how bubbles usually burst, a dip below Bitcoin’s baseline growth trend (measured by the 200-week simple moving average) could push the price as low as $14,000.
The worst-case scenarios keep on coming.
Many, though, have pegged the likely bottom range at $14,000 or close to it. It would be a loss of nearly 80% from the current all-time high of $69,000, which corresponds to the prior cycle’s bottom in percentage terms.
According to statistics from on-chain analytics firm Glassnode, the present level of around $31,000 indicate a relatively slight decrease.
Rekt Capital, a fellow analyst, estimated a possible goal of $15,500 if BTC/USD collapses below its 200-week moving average last month.
Sellers may find it tough to drive the market so low. MicroStrategy, which holds the largest BTC corporate treasury, has stated that it will buy into any BTC cascade approaching the $20,000 mark.
Former CEO of trading company BitMEX, Arthur Hayes, too has claimed that he would be willing to participate in BTC at a price of $20,000.
The author’s thoughts and opinions are purely his or her own and do not necessarily reflect those of Cryptomufasa.com. Every investment and trading decision entails risk, so do your study before coming to any conclusion.