Bitcoin (BTC) faces a “cycle bottom” this year in which it could drop over 50% from current levels, research claims.
In a Twitter thread on June 1, Venturefounder, a contributor at on-chain analytics platform CryptoQuant, forecasted 2022 as Bitcoin’s year to “capitulate.”
Bitcoin now has “best 3-year ROI ever”
Based on historical patterns involving Bitcoin’s halving cycles, this year should be the bearish black sheep of the current four-year cycle, Venturefounder wrote.
Just like 2018 and its bear market, BTC/USD should find itself a macro floor at some point in 2022, and whcalculating previous dips from all-time highs, this could be anywhere between $14,000 and $21,000.
“670 days until the next Bitcoin halving, we are on time to BTC performance comparing to past cycles,” one tweet explained:
“In the next 670 days, BTC will capitulate in the next 6 months and hit cycle bottom ($14-21k), then chop around in $28-40k in most of 2023 and be at ~$40k again by next halving.”
Such a prognosis, while not music to the ears of bulls, such a prognosis would not be without precedent. After hitting $3,100 in December 2018, Bitcoin managed a recovery to $13,800 seven months later before reversing downhill again to bottom at the March 2020 lows of $3,600.
Even the 2019 local high was not enough to beat the record high of the time set in December 2017 — $20,000.
That level could yet again become a feature of the spot price chart, Venturefounder believes. Those willing to ride the wave and invest — even now — will nonetheless be on the right side of history.
“In other words, buying Bitcoin from this point to the next 6-12 months is as good as it gets. Probably the best 3-year % ROI ever,” he added:
“We may not be at THE cycle bottom, but we are within the range of BTC cycle bottoms. This is the best you can do when timing the market cycles.”
Bottom forecasts keep coming
Others have meanwhile already estimated the likely bottom range at $14,000 or nearby.
Related: ‘Mega bullish signal’ or ‘real breakdown?’ 5 things to know in Bitcoin this week
That price would represent a drop of around 80% from the current $69,000 all-time high, corresponding to the previous cycle’s low in percentage terms.
Current levels around $31,000 are comparatively modest as a drawdown, data from on-chain analytics firm Glassnode shows.
Last month, fellow analyst Rekt Capital calculated a potential target of $15,500 once BTC/USD dips below its 200-week moving average.
Sellers may face difficulties in driving the market so far down. MicroStrategy, which owns the largest BTC corporate treasury, has pledged to buy into any cascade toward the $20,000 mark.
Arthur Hayes, former CEO of trading giant BitMEX, has also confirmed that he would be interested in BTC at $20,000.
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Source: https://cointelegraph.com/news/bitcoin-may-hit-14k-in-2022-but-buying-btc-now-as-good-as-it-gets-analyst