Bitcoin Analyst Believes BTC Will Bounce Back Fast Despite Majority of Real Investors Scorned
The rise of BTC to $20,000 in December 2017 was typical of a bubble cycle. The hype and attention it had led to FOMO as everyone clamored to get a piece of it. The result was the bubble bursting in January 2018 with many investors being seriously burned.
Most of the early investors did not feel it. However, once it started going pear-shaped and fell below $6000, the investors were under water. They are still drowning since that time. However, a famous crypto analyst does not believe this bear market will last much longer.
Relatively Short Bear Market
In the ten years since the invention of BTC, investors have only been underwater for two years. BTC has been lauded for its ability to produce gains in a manner not seen in the fiat market. The current price of BTC of about $36000 represents a rise of about 120 million percent since the first known price of $0.003.
Due to the initial rise from almost nothing to $20,000, there have been many opportunities to make a profit. It is quite rare for investors to be underwater. Recent data shows that almost 80 percent of the existence of BTC has been profitable.
Before the current bear market, investors have only been underwater twice. Towards the end of 2011, BTC took a dive when prices fell from around $8 to about $2 between August and September. In December, the coin was able to recover. In 2014-2015, the coin was again hit by a bear market. The hack on Mt. Gox triggered the bear. In January 2015, the BTC fell underwater again and remained so until November of that year.
In total, this is only about 18 months of its existence that it has been underwater. Given its ability to bounce back, BTC might be about to hit its bottom and begin climbing back.
Is The Bear Market Ending Soon?
While the data shows that BTC might be near the bottom, the data shows that a bull run is not likely. Should it hit bottom, it could follow the pattern of 2015 where it stay nine months near the bottom. After that, the BTC Bull Run set it. Thus far, the coin has followed a pattern quite similar to 2014-2015.
The last time it went underwater, it remained so for about 11 months. Later on, a relief rally did occur, and the bear resistance did not bat it down. The bear market today began when the coin fell below the critical support of $600. It happened in November 2018, and the bear run took root. Some experts had been predicting that December would see prices get better, but prices continue to fall. The data suggests that the bear run could continue for many months into the future.
It is the same for most other coins in the market. Some have gone so low that they have no value. However, some have been breaking free of the bear due to projects around the coins.