On Tuesday, Bitcoin, the biggest cryptocurrency by market cap, fell near $27,000 after reaching a latest excessive of $28,889. The drop was attributed to the Commodity Futures Buying and selling Fee’s crackdown on Binance.
An analyst, Tedtalksmacro, identified that the present worth tendencies of Bitcoin are just like these of 2019, the place the cryptocurrency reached a backside after deviating 83% from its all-time excessive (ATH) roughly 500 days earlier than the 2020 halving.
Equally, Ted predicts that Bitcoin will backside out in 2023 after dropping 78% from its ATH, roughly 500 days earlier than the 2024 halving.
Ted additionally famous that the 2021/22 echo bubble exceeded the 2018 echo bubble by a a number of, and hypothesized that barring one other black swan occasion like a 3rd world conflict, the COVID black swan worth motion mustn’t repeat itself.
One other analyst, Andrew Kang, drew parallels between the current and 2020, the place regulatory FUD surrounded Bitcoin after the COVID restoration, inflicting markets to be hit with a barrage of regulatory FUD from US and China regulators.
The US authorities focused CryptoHayes and Bitmex, whereas the Chinese language authorities went after OKX and Huobi executives. Regardless of this, the markets couldn’t break beneath $10k and ultimately climbed the wall of fear.
the present worth tendencies of Bitcoin are just like these of 2019, the place the cryptocurrency reached a backside roughly 500 days earlier than the halving. Whereas the 2021/22 echo bubble exceeded the 2018 echo bubble, analysts predict that Bitcoin will backside out in 2023, barring any black swan occasions, and climb again up through the consolidation section. Regardless of regulatory FUD surrounding Bitcoin, the markets have proven resilience and climbed the wall of fear.