Bitcoin is in another bull cycle, claims Pantera Capital
According to a well-known investment company, the leading cryptocurrency has already passed the worst period of the bear market.
Bitcoin increased its value by more than 40% in January this year, and Pantera Capital CEO Dan Morehead argues that the largest of the digital currencies has entered another bull cycle. After the turbulent events on the cryptocurrency market in 2022, the BTC rate dropped to around $16,000 per coin. It is currently trading above $21,000. Although it is a huge gap from its all-time high, some experts believe that the BTC chart is back on the upward path.
Bitcoin has entered another bull cycle
The founder of the investment company Pantera Capital gave a bold opinion on the current situation on the market of the oldest cryptocurrency. He stated that it broke free from the trap of the bear market, returning to the growth path.
In recent months, the Bitcoin price has plunged to around $16,000 due to a number of negative events on the digital currency market. The impulse for further declines was the collapse of the FTX virtual currency exchange and the huge controversies associated with it. After a series of implosions, including other bankruptcies, investors began to be even more distrustful of this industry, which in turn translated into a deepening of the negative sentiment in the entire sector.
Although at the beginning of January this year the price of the largest cryptocurrency was close to USD 16.4 thousand, the BTC chart saw a visible rebound to levels above USD 23 thousand. The increases then exceeded 40%. After a slight correction, Bitcoin is now above the $21,000 line, and market sentiment has definitely improved. An indicator measuring the sentiment among investors of the leading virtual currency from the alternative.me platform indicates that they showed greed last week. The current sentiment remains neutral.
In the opinion of Dan Morehead, there is a lot of evidence that Bitcoin could enter another bull cycle. This man referred to the previous bear market in the cryptocurrency sector, which had a median of 307 days. This analyst noted that the last bear market lasted 376 days.
Another element pointed out by the CEO of Pantera Capital is the depth of the declines in the BTC chart. The median shows that in the previous bear market it was -73%. Until recently, decreases on Bitcoin amounted to about 77%. Citing this data, Dan Morehead stated that the bear market is over and the BTC rate will soar higher and higher.
The seventh cycle of the bull has probably begun.
In his analysis, the CEO of Pantera Capital emphasized that the largest of the virtual currencies is before another bullish cycle, after six bearish cycles. He also added that the price of BTC has increased on average 2.3 times a year during the bull market over the last 12 years.
Currently, from its November 2021 ATH, the largest cryptocurrency is over 68%. Over the past 7 days, its price has fallen by about 4%. Daily fluctuations currently remain small. To surpass the previous price peak, the value of Bitcoin would have to increase more than 3 times.