The historic bitcoin bull cycle is still intact, despite the fear of generalized investors about the current correction, which can only be a temporary “shaking” before lightness, according to crypto market analysts.
The Bitcoin price (BTC) is currently down 22% compared to its summit of more than $ 109,000 recorded on January 20, on the day of the inauguration of US President Donald Trump, Cointelegraph Markets Pro Data.
Despite several times the feeling of investors in the “extreme fear”, the models of historical graphics suggest that this could be a shaking prices – a sudden drop in prices caused by several investors that emerging from their positions, preceded by a sudden price recovery.
“Several key technical indicators have become down, leading to speculations that the bull cycle could end prematurely,” Bitfinex analysts told Cointelegraph.
BTC / USD, graphic 1 year. Source: Cointelegraph
“Despite this, the cycle of 4 years of Bitcoin remains an important factor, historically shaping the price movements,” said analysts, adding:
“Corrections in bull cycles are normal, and past trends suggest that it can be a shaking rather than the start of a prolonged bear market.”
However, the launch of funds (ETF) Bitcoin exchangers (ETF) of the United States, which temporarily exceeded $ 125 billion in cumulative assets, as well as investments in increasing institutional cryptography indicate “clearly that the conventional cycle ceases to exist,” added analysts.
In relation: Bitcoin needs a weekly fence above $ 81,000 to avoid disadvantages before the FOMC
In an optimistic sign for price action, Bitcoin organized a daily fence greater than $ 84,000 on March 15, for the first time in more than a week for March 8, according to tradingView data.
BTC / USD, graphic at 1 day. Source: Tradingview
However, due to Bitcoin’s correlation with traditional financial markets, BTC can only find a background with the stock markets, in particular the S&P 500, said Bitfinex analysts, adding:
“While $ 72,000 at $ 73,000 remains a key support range, the broader market story, in particular global treasure yields and action trends, will dictate the next major Bitcoin movement.”
“Trade wars have already been assessed, to a certain extent, but prolonged economic tension could weigh on feeling,” added the analysts.
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Bitcoin in half and cycle of four years are always crucial for price action: Nexo analyst
Despite the fears of a disturbed bitcoin bitcoin market, the four -year cycle, as well as the Bitcoin rambling event, remain crucial for the action of Bitcoin prices, according to Iliya Kalchev, dispatch analyst at Nexo Digital Asset Investment Platform.
“The annual growth rate of compounds of four years of Bitcoin (TCAC) decreased to a record level of 8%, asking questions about the question of whether its traditional four -year cycle remains valid,” Kalchev told Cointelegraph, adding:
“Although a strong institutional adoption in the past year has served as a significant rear wind for Bitcoin, its half events should always have long -term influence.”
Half Bitcoin 2024 evaluation reduced the Bitcoin network reward to 3.125 BTC per block.
BTC / USD, graphic to 1 day since 2024 reduction by half. Source: Tradingview
The price of Bitcoin increased by more than 31% since the last edition in half occurred on April 20, 2024, which was invented the “most optimistic” configuration for the Bitcoin price, partly due to the growing institutional interest for the world’s leading cryptocurrency.
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