Crypto Analyst: Bitcoin Bull Market ‘Not As Sharp’ Will Take Years to Play Out to Full Effect
- Bitcoin Misery Index pointed towards a “trendless” market after July
- Each Bitcoin market cycle took significantly longer than the previous and not as sharp
- Bitcoin to be treated as a safe haven asset “*just in time* for a generational Blow-Off Top in the current monetary system”
Bitcoin is back around $10,000 after the high of $10,950 in the first week of September.
Yesterday, we went down to a low of $10,060 but soon climbed to almost $10,500 level. However, we are back down again and Bitcoin continues to trade sideways.
Bitcoin bull and co-founder & Managing Partner at Fundstrat Global Advisors, Thomas Lee also said the Bitcoin Misery Index pointed towards a “trendless” market after July.
In July, it fell below 60 that is associated with trendless Bitcoin. Now, before the next big move up, the BMI needs to get to 50.
At the time of writing, BTC/USD has been trading at $10,253 with 24 hours gains of 0.12% while the trading volume takes a drop from yesterday's $1.2 million to about $700 million, as per Messari.
However, it in no way a matter of concern.
Investor and trader Josh Rager advises crypto investors to “be patient” with Bitcoin and cryptocurrency market.
As we have seen with previous bull cycles, “each Bitcoin market cycle took significantly longer than the previous” ones.
While the first cycle took 245 days from bottom to peak high, the next one added almost 500 more days as it reached a new high from the bottom in 742 days, and the third, previous, cycle took 1064 days.
By this standard, the next cycle is expected to take more than 2000 days which means, it can be expected sometime in 2022.
Also, each market bottom to peak high in price hasn’t been as sharp. The percentage of return during each of these cycles dropped — 318,864% in 2011, 58,474% (2014), 11,960% (2017) — which means this time as well, it would be 1/5th of the previous cycle.
Similar sentiments are shared by trader Moon Overlord who said,
“Naturally as Bitcoin expands as does the velocity at which these moves take place. With each dollar added to the market cap it becomes that much harder to grow and the percentages become more incremental. A bull market at this scale will take years to play out to full effect.”
Meanwhile, analyst Murad Mahmudov talks about Bitcoin’s status as a safe haven asset which he says is going to be gradually treated as such, “*just in time* for a generational Blow-Off Top in the current monetary system.”
With 7 billion people and their governments chasing “true scarcity with infinite monopoly money,” it’s all about real vs. paper assets now, he added.