📊BTC: which cycle does Bitcoin copy? 2018vs2020
Updated
💹Should we wait for a quick recovery and a Bullrun or will accumulation starts again? Bitcoin is already down by 60% from its ATH. But it is important to understand what scenario Bitcoin will follow. I decided to take two examples from history of how the major crypto-boss was recovering.
🚩Bottom of 2020. Conditions for recovery:
1. Black Swan - Covid-19 pandemic.
2. Fed printed a lot of dollars to fight the crisis. As a consequence, inflation began to rise and the dollar began to depreciate. $4,000 a year ago=$4,200 today for the same Bitcoin.
3. After getting unemployment benefits, a lot of retail investors started investing in crypto.
✅Now we can repeat the V-Shaped Recovery as in 2020. That means by late summer/early fall Bitcoin will be near the upper boundary of the channel, around 70K.
🚩Bottom of 2018. After a year of consolidation and falling by 80% from the ATH, Bitcoin began to consolidate again. Conditions for recovery:
1. The biggest economic growth cycle of 2009-2021 was at its peak. Bitcoin was able to return to $14,000 in a few months - up 400% from the lows.
2. Capitulation of retail traders and investors. After such a long and debilitating decline, all retailers were desperate and sold their crypto to the big players.
3. Interest in crypto only grew among institutional investors and experienced traders even in spite of the fall. Everyone put their money into crypto because they saw its obvious advantage over fiat currencies.
4. The main part of cryptocurrency exchanges, such as Binance, began to launch and investing or trading became more accessible to anyone with any deposit.
✅If the Accumulation scenario repeats, we will see Bitcoin at $100,000 close to New Year, not only paired with UST, but also with USDT or USDC.
📊What is now in 2022:
1. Economic and market sentiment indicators are showing traders and investors panic.
2. All global financial markets are under the pressure because of FED raising rate.
3. Global political disasters.
4. Crypto continue to grow it`s popularity. Investment funds increase their investments in cryptocurrency projects and fintech startups every quarter.
5.The topic of crypto is on the rise, even though Luna has fallen by 99%.
💻What scenario are you looking at? Share your idea or a picture of the chart in comments! Let's discuss them with the whole crypto community!
Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
🚩Bottom of 2020. Conditions for recovery:
1. Black Swan - Covid-19 pandemic.
2. Fed printed a lot of dollars to fight the crisis. As a consequence, inflation began to rise and the dollar began to depreciate. $4,000 a year ago=$4,200 today for the same Bitcoin.
3. After getting unemployment benefits, a lot of retail investors started investing in crypto.
✅Now we can repeat the V-Shaped Recovery as in 2020. That means by late summer/early fall Bitcoin will be near the upper boundary of the channel, around 70K.
🚩Bottom of 2018. After a year of consolidation and falling by 80% from the ATH, Bitcoin began to consolidate again. Conditions for recovery:
1. The biggest economic growth cycle of 2009-2021 was at its peak. Bitcoin was able to return to $14,000 in a few months - up 400% from the lows.
2. Capitulation of retail traders and investors. After such a long and debilitating decline, all retailers were desperate and sold their crypto to the big players.
3. Interest in crypto only grew among institutional investors and experienced traders even in spite of the fall. Everyone put their money into crypto because they saw its obvious advantage over fiat currencies.
4. The main part of cryptocurrency exchanges, such as Binance, began to launch and investing or trading became more accessible to anyone with any deposit.
✅If the Accumulation scenario repeats, we will see Bitcoin at $100,000 close to New Year, not only paired with UST, but also with USDT or USDC.
📊What is now in 2022:
1. Economic and market sentiment indicators are showing traders and investors panic.
2. All global financial markets are under the pressure because of FED raising rate.
3. Global political disasters.
4. Crypto continue to grow it`s popularity. Investment funds increase their investments in cryptocurrency projects and fintech startups every quarter.
5.The topic of crypto is on the rise, even though Luna has fallen by 99%.
💻What scenario are you looking at? Share your idea or a picture of the chart in comments! Let's discuss them with the whole crypto community!
Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
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