Bitcoin and Ether prices: bull market/bear market, fourth Bitcoin cycle

The cryptocurrency market is currently experiencing its fourth bear market and this is a stressful time for investors, especially in the short term, but is not a phenomenon that should spell the end for Bitcoin and the cryptocurrency market.

Let’s go back a bit to these three other bull markets (bull markets) followed by the bear markets that accompanied them. In 2011, the lowest recorded on Bitcoin was $0.29 and the subsequent upward movement allowed the cryptocurrency to reach a high of $32 in June of the same year. The second bull market was seen in 2013, with a yearly low at $13.16 and a high at $1242.

The third, which brought cryptocurrencies to more mainstream investors, occurred between 2015 and 2017. The low in August 2015 was $200 and the 2+ year bull market led Bitcoin on an all-time high of $20,000.

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All of these bull markets have been accompanied by an impressive bear market, but so far bitcoin has always hit new all-time highs thereafter.

The last bull market ended last November at an all-time high of $69,000, up 1700% from the $3900 seen in March 2020 and this naturally leads to a new bear market, which we are currently in. .

Although the violence of the shock is intense, particularly for investors entering the market after 2019, the phenomenon is not new. This especially creates an exceptional opportunity for those with a long-term horizon and also allows for great short-term opportunities.

The market should rise again, but the bear market could last for several more quarters and drive Bitcoin or Ether to new lows. Indeed, there are many risks weighing on the market, starting with the impact of the tightening of the US Federal Reserve’s monetary policy on speculative assets, and then the reduction that should follow. In addition, the cryptocurrency market could be plagued by liquidity and trust issues and face increased regulation.

Thus, the short-term movements should remain brutal and the bear market should continue for a while. Thereafter, the evolution could be more gradual and the declines less intensive, but the downtrend will probably remain for several quarters.

Technical analysis of the price of Bitcoin and Ether

Chart of Bitcoin in daily data

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