All markets are controlled by cycles whether they are crypto assets or the traditional market. A market cycle is an increase in price or bull market. Members of the crypto community wonder when cryptocurrencies will take off next. As usual, Bitcoin, the largest digital currency by market cap, starts most bull runs. Looking at BTC price performance over the years could help predict when cryptos will take off.
Bitcoin traded at $0.06 on September 2010, but today, it is trading at over $7k. The coin’s bull cycles will be examined in this article.
The History of Bitcoin’s Bull Runs
Crypto analysts believe that bitcoin’s rise and fall is a vicious cycle. It is important to note that during bullish cycles, crypto markets develop and become more mature. This leads to different changes.
When each cycle starts, cryptos pop up with more use cases and advanced technology. Some include Ripple, Ether and smart contracts, EOS, NEO, and Cardano among others.
Bull cycles often lead to increased trading volume and liquidity. One example is the first bullish cycle of Bitcoin in 2011 where the rates increased by up to 4,500%.
Infrastructure and recognition of digital assets are on the rise. Before 2010, there was no formal exchange for trade. In 2013, one exchange was in existence and the largest one, Mt.Gox was closed in the following year. Still more reliable exchanges have popped up as the industry grows.
The Bitcoin Bull Cycles
All bull cycles start with a sharp rise in price. As BTC users increased in 2011, the price rose from $0.06 to around $0.08. At this time, more investors joined for the long term and shared the vision of Satoshi, Bitcoin founder.
The longest bear market of Bitcoin lasted for close to 59 weeks from 2013 to 2014. When it bounced back, BTC price increased by 86%. This figure is considered as the average correction for the coin. This is evidence that there’s nothing strange about a drop in BTC market value.
Also, crypto analysts believe that low prices do not imply a bearish trend. The coin has seen a 43% correction since it peaked in June earlier this year. It still maintains a strong 100-day moving average. Some crypto enthusiasts believe that the coin may decline further, but this doesn’t mean that a bear market has started.
When Is The Bull Market Starting?
Technical analysts believe that bitcoin has a positive outlook for the long term. This conclusion was reached due to the reduction in block rewards and several other indicators. Some of them predict that the coin will keep consolidating in the meantime until it finds strong support.
Does this mean we can expect a bull cycle soon? Well, 2019 has been a better year for cryptocurrencies as a whole. All through 2018, BTC price dropped dramatically. The fortunes of BTC changed the following year and it has grown since then. However, it has not been able to surpass the all-time high of 2017.
A bull cycle is surely coming despite the current correction. The oncoming halving event is an indicator that the price would increase. The pre-halving hype has always impacted the price of BTC positively. Analysts believe that it will fall to $7k and will consolidate until the next bull run which is expected in 2019-2020 just before the halving.