While the price of Bitcoin has kept everyone in the cryptocurrency space watching in amazement, the recent rally for the digital asset continues and appears to be unstoppable. Other coins have only dropped in minor levels against BTC. Litecoin price prediction 2019 has been surpassed already. Ethereum is already making serious moves and XRP is leading the market again.
However, if we follow history, it is safe to say an end to this current rally may be in sight. After this phase, the uptrend would have brought more than 600% gains for investors. At least that’s what many experts believe.
Crypto Bear Cycle is Coming to an End as Drawdown Nears Peak Levels
Due to the price of Bitcoin being paired with other tokens on exchanges, the two asset classes are in a closely tied relationship with one another. But the relationship between Bitcoin and altcoins is a confusing one. At times, the pairs rise and fall in correlation way. Sometimes they appear to grow separately or decline inversely from one another.
The moment the price of Bitcoin broke $4,200 on April 2, altcoins diverged hard. While the price of Bitcoin rose, other altcoins fell hugely against BTC.
While the price of Bitcoin managed to set new highs, altcoins set lows against BTC. The total market capitalization of altcoins drawdown has been about 66.5% as of May 15. According to Nik Patel, who is an experienced crypto trader, during the previous four “altcoin BTC bear cycles,” each phase has had a 70% average drawdown. This is a mere 3 & half percentage points from the current levels. It is safe to say this could indicate that selling pressure is nearly exhausted. Meaning a fresh bull cycle could be initiated.
Average Growth Experienced During Bull Cycle Will Bring 617% in Gains for BTC Investors, Analysts Say
When a bull cycle comes to fruition, the average growth rate experienced has brought investors 617% gains. Gains of such magnitude would bring the price of XRP to $2.40, the price of Ethereum to $1,200 and the price of Litecoin over $500.
Gains like this haven’t been witnessed in crypto since early 2018. At the time, the market crashed afterwards, and the longest bear run ensued. It’s only recently that a new bull run may actually have started. The price of Bitcoin is leading the charge. If altcoins can rally in a similar fashion to the way the price of Bitcoin, the previous bull market will return, and cryptocurrency prices could reach new highs across the board.
Using Historical Data, the Next Market Cycle for Bitcoin Could Send Prices Towards $78,500, Analyst Declares
According to Josh Rager, a popular crypto analyst on the social media platform, Twitter, the price of Bitcoin could surge as high as 2,392% in the future. Rager analyzed Bitcoin’s historical patterns and concluded that the next crypto bull run will see the price of Bitcoin gain as high as 2,392% in coming years. In his words:
“Bitcoin Rate of Return during each bull cycle had a 20% return from the previous cycle. 2011 had a return of 318,864% which is $31.90 high, 2014 had a return of 58,474% which is $1,177.19 high, and 2017 had a return of 11,960% which is $19,764.51 high. For 2022 the Potential Return should be 2,392% which will give $78,500.00 another potential high.”