Arcane Researchers compared drawdowns of the first cryptocurrency in past market cycles. In their opinion, the potential for a decrease in the price of bitcoin remains until the level of $10,350.
“Over the course of its 13-year history, bitcoin has gone through several boom and bust cycles. The current 222-day drawdown of 73% may seem painful. However, hodlers were tested much harder in 2013 and 2017,” the experts wrote.
According to their observations, after the peak in November 2013, the price of the cryptocurrency bottomed out, sinking by 85% within 407 days.
The bear market that followed the $20,000 mark in December 2017 was similar in its characteristics. For 364 days, digital gold has fallen in price by 84%.
“If bitcoin follows the trajectory of these cycles, the bottom could be reached sometime at the end of the fourth quarter of 2022 at around $10,350.”
Analysts noted that in recent years, macro factors have begun to influence bitcoin more: financial markets, rate changes FedUS elections and regulation of the crypto industry.
Representatives of Arcane Research emphasized that the current quarter was the worst for investors in the history of the first cryptocurrency.
According to them, a “cocktail of unpleasant events” contributed to the fall in prices, including the collapse of Terra and serious problems with Three Arrows Capital.
Earlier, a crypto bullet technical analyst allowed the price of bitcoin to drop to $12,000 if the $18,600 level does not stand under the onslaught of bears.
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