Has Bitcoin (BTC) Price Bottomed? Here’s What the Grayscale Report Says – Coinpedia – Fintech & Cryptocurreny News Media

The question of whether Bitcoin has already bottomed has received a lot of attention since it surpassed $22,000 on Monday. However, a number of major investors advise against buying a position quickly. Grayscale, meanwhile, has been researching the whereabouts of the current Bitcoin bear market cycle.

The digital currency investment firm noted that like financial markets, cryptocurrency markets are also subject to seasonal fluctuations.

According to the report, crypto market cycles span nearly four years on average, and Bitcoin’s realized price can be a useful indicator of how long a cycle will last.

The sum of all purchase prices divided by the amount of BTC currently in circulation results in the price achieved for one Bitcoin.

How long will the bear market last?

According to Grayscale research, Bitcoin’s realized price fell below the market price last week, signaling the beginning of a bear market. In addition, it implied that the bear market would rise for another eight months.

“On June 13, the realized price of bitcoin crossed the market price, suggesting that we may have officially entered a bear market. After just 21 days in this zone, we may see another 250 days of quality buying opportunities compared to previous cycles.”

The research also found that it could take another four months before the current cycle, which began in 2020, shows any forward movement. There is a possibility that the realized price will exceed the market price again after four months.

Going forward, this will help determine when the market will start to recover from a bear market, according to Grayscale.

Additionally, Bitcoin is down 222 days from its peak, suggesting the price could continue falling or move sideways for “another 5 to 6 months.”

At the time of writing, BTC is trading at $22,202 and is up more than five percent in the past 24 hours.

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