The world has just stepped into the new year with a new hope that the crypto space could regain its glory. Just similar to the beginning of 2021, 2022 is also expected to add up huge profits and mark new highs. However, the bearish trend cannot be completely eliminated as the BTC price could encounter the year’s first downtrend before a notable uptrend. A popular analyst sums up the events and notes down the pattern according to which a huge correction may be fast approaching.
What’s Next For Bitcoin Price ?
Bitcoin price since the beginning of the first-ever bull run in 2013 appears to have followed a specific pattern. Ever since the start of the trade, BTC price maintained specific days of a bull run. Further, it underwent a bearish trend for a specific time frame with a pre-defined drop percentage.
The very first bull run lasted for more than 777 days in 2012-13 which jumped more than 51,133%. Further, the asset followed a downtrend for nearly a year by dipping by 87%. Further during the 2018 cycle, BTC recorded a nearly 12,800% jump with an 84% drop. A similar trend is showcased in 2021 where the asset jumped more than 2100%.
Yet the asset appears primed to undergo the year’s first bear cycle mainly due to,
- The pattern:- Each time the BTC price rallies gigantically, it has dropped nearly 84% from its highs. And if currently, the asset drop with such a large margin then the price may dip very close to $11,000 or else dip below these levels.
- The MACD in the weekly time frame is showcasing a bearish trend and failing rebound from the lower levels
- Also, the participation of the institutional investors may reduce the volatility as they tend to buy at the dip and hold for a long time
Moreover, inflation is also on a raise which may aid the Bitcoin price rally to a large extent. But if the asset follows same pattern, then a huge plunge could drag the price to most lower levels.
Yet the chances of such a huge drop as predicted by the analysts appears to be pretty low as the institutional investors have acquired a huge amount of BTC at an average rate of $24,000. And they may not allow the asset to plunge below these levels. Therefore, even if the asset falls into a deep bearish well, yet may not bow down below $30,000.