A quant has identified the similarities between the 2017 and 2021 Bitcoin cycles, one thing that might trace at how the remainder of this bear market may play out.
Each 2017 And 2021 Bitcoin Cycles Noticed New Lows Round The 365-Day Mark Since The High
As defined by an analyst in a CryptoQuant post, the 2 cycles are extra related than one may count on them to be.
The indicator of relevance right here is the “drawdown from ATH,” which measures the share lower within the value of Bitcoin following the all-time excessive throughout every cycle.
Here’s a chart that reveals the development on this metric for the 2017 and 2021 cycles:
Appears to be like like the present cycle hasn't gone as deep because the earlier one but | Supply: CryptoQuant
Within the above graph, the beginning level for the 2017 Bitcoin cycle drawdown is within the December of 2017, when the all-time excessive of the interval was set.
Following this prime, the value of the crypto took a pointy plunge till round when the drawdown from the ATH had reached a worth between 65-70%.
After reaching these drawdown values, the value began to stabilize, and ran sideways for about 110 days.
Then, nevertheless, within the November of 2018 the worth of Bitcoin abruptly collapsed, and stored declining till the underside was reached round one year following the ATH.
As for the present 2021 cycle, the highest fashioned final November, and since then the value has been dropping off. The chart reveals the trail this drawdown has taken up to now.
Whereas the decline isn’t precisely the identical within the two cycles, there may be nonetheless a putting similarity between them.
Similar to within the earlier cycle, Bitcoin plunged onerous following the highest, till the drawdown from the ATH hit a worth of 70%.
The crypto’s value then consolidated flat just like within the earlier cycle, after which at across the 365-day mark, BTC made a brand new low after plunging similarly to the November 2018 crash.
To this point this cycle has resembled the earlier one, however it’s unsure in the intervening time whether or not it’s going to proceed to take action in the remainder of the bear or not.
If it certainly follows an identical development from right here on, then the quant believes there would nonetheless be one other 100 days of sideways motion left (wherein the cycle backside shall be fashioned) earlier than the top of the bear.
BTC Value
On the time of writing, Bitcoin’s price floats round $16.5k, down 20% within the final week.
The worth of the crypto appears to have been transferring sideways just lately | Supply: BTCUSD on TradingView
Featured picture from Jonathan Borba on Unsplash.com, charts from TradingView.com, CryptoQuant.com
